Oland Brewery says it could move if proposed Halifax Water rate hike is implemented

There is growing pushback on a proposed rate hike from Halifax Water.

Oland Brewery says a proposed rate hike by Halifax Water would threaten its production levels in Nova Scotia and make it “extremely challenging” to increase its production volume.

In a letter to the Nova Scotia Regulatory and Appeals Board, Frederick Tofflemire, general manager of Oland Brewery, called the proposed hike “unjustifiable” and said the company may look at other cities in which to do business.

“High power rates and unreliable service, increasing natural gas prices, and a high corporate tax rate are all elements that combined with this request for increase water and wastewater rates hurt our competitiveness,” the letter reads. “The cost of doing business in Halifax is simply becoming more expensive.

“As the federal and provincial governments work to remove internal trade barriers, companies like ours may move production to jurisdictions where it is more affordable.”

Halifax Water is seeking a rate hike on water and wastewater services that, if implemented, would increase average residential bills by 16.2 per cent in 2025-2026 and by 17.6 per cent in 2026-2027.

“Ultimately, we are in a financial deficit. We are forecasting approximately $18.5 million deficit for fiscal 2025-2026 and an almost $37 million deficit for 2026–2027,” said Jeff Myrick, senior communications manager for Halifax Water.

“Mostly, it’s attributed to managing the growth in the city and the ageing infrastructure.”

The changes would take effect on Jan. 1, 2026, and April 1, 2026.

“This is not something that we are taking for granted. We know that customers are pinched, but ultimately, we have to get back to a cost neutral basis for our long-term financial health,” said Myrick.

Tofflemire said the proposed increase would make it harder for Oland to do business in Nova Scotia, which he said is already at a “geographical disadvantage.”

“With these proposed changes, both water and wastewater will become more expensive in Halifax than at our surrounding breweries,” the letter reads. “Wastewater is already substantially more expensive and other utilities are not escalating their price by anything close to 25%.

“In our case specifically, these late increases only widen the gap between wastewater costs and other Labatt breweries in Canada.”

In a letter to the Nova Scotia Consumer Advocate, Halifax Mayor Andy Fillmore said his office has received more than 2,000 emails from residents about the proposed rate hike.

“A rate increase of this magnitude is more than a technical adjustment; it represents a significant financial burden for thousands of households and small businesses already struggling with affordability pressures,” Fillmore said. “As noted in many of the emails, residents fear they will be forced to make difficult choices between paying for essential utilities and meeting other basic needs.

“Affordable, safe, and reliable water service is a public necessity, not a luxury. While I understand Halifax Water must maintain critical infrastructure and ensure long-term sustainability, the approach must balance fiscal responsibility with community impact.”

Duncan Roberston, director of Canadian Federation of Independent Business Nova Scotia, says small businesses are operating under razor thin margins, so no matter what the increase it will have an impact.

“We’re looking at a lot of uncertainty out there in the economy. Since the winter of last year, we’ve seen concerns around tariffs, we’re seeing low business confidence as well,” said Robertson.

“Currently, there are more businesses in Nova Scotia pessimistic than optimistic over the next three to 12 months, so by adding cost like this to small businesses it’s really at the worst time possible.”

The Nova Scotia Regulatory and Appeals Board will hear the application for the rate hike starting at 9 a.m. on Sept. 15.

With files from CTV Atlantic’s Jonathan MacInnis.

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