Halifax Water looking to raise residential bills by $148 in 2025-2026

Halifax Water is seeking a hike in the average residential bill over the next two years.

Halifax Water is looking to increase average residential bills over the next two fiscal years to address its “significant operating deficits.”

The utility says it has submitted a general rate application to the Nova Scotia Regulatory and Appeals Board (NSRAB). If approved, average residential bills would increase by 16.2 per cent in 2025-2026 and by 17.6 per cent in 2026-2027.

“Halifax Water operates on a cost-of-delivery model with no profit built into rates,” a news release from the utility says. “However, it is facing significant operating deficits projected to be $18.7 million for 2024/25 and $34.1 million for 2025/26. This situation is attributed to increased inflation, rising interest rates, depleted reserve funds, aging infrastructure and depreciation. Measures must be taken to tackle these financial challenges and maintain reliable water services.”

In real terms, the average residential bill would increase by $148.01 in 2025-2026, and then by $186.56 in 2026-2027.

The current estimated average annual bill is $914.20. The increases would raise it to $1,062.21 in 2025-2026 and to $1,248.77 in 2026-2027.

Across the next two years, the requested increases would raise the total costs per day from $2.50 to $2.91 to finally $3.42.

“We understand that requests for rate increases come at a time when many households are already feeling the pinch of rising costs, but it is unavoidable,” said Kenda MacKenzie, general manager and CEO of Halifax Water. “Operating as a not-for-profit, we require the proposed rates for strategic investments to continue ensuring safe and dependable water services. Without them, we risk long-term financial instability that could jeopardize the quality of services provided to the community.”

Nova Scotia’s Department of Municipal Affairs says the province plans to intervene in the NSRAB hearing to “ensure Nova Scotians’ concerns are heard.”

“Nova Scotians are still struggling with the cost of living,” the statement reads. “This is an extremely high proposed rate increase.”

Halifax Mayor Andy Fillmore called the proposed increase unacceptable.

“This is too much at a time when the municipality needs to tighten its belt,” he said.

Halifax Water notes it intentionally suppressed rate increases during and coming out of the COVID-19 pandemic by tapping into its reserves and accumulated surpluses.

The last rate increase, which was 3.6 per cent, happened in 2023.

-With files from CTV Atlantic’s Jesse Thomas

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