Nova Scotia

Halifax Water seeking rate hike to deal with growing budget deficit

Halifax Water is asking the Nova Scotia Regulatory and Appeals Board to approve rate increases for the next two fiscal years to make up for what it's calling a "significant budget deficit."

Utility asking for 16.2% increase in average bill in 2025-26, 17.6% increase in following year

The corner of a commericial building with the words Halifax Regional Water Commission.
Halifax Water is seeking its first rate hike since 2023. (CBC)

Halifax Water is asking the Nova Scotia Regulatory and Appeals Board to approve rate increases for the next two fiscal years to make up for what it's calling a "significant budget deficit." 

In a release Monday, the utility said it's asking for a 16.2 per cent increase in the average residential bill in the 2025 fiscal year, which began April 1, and an additional 17.6 per cent increase in the 2026 fiscal year.

According to Halifax Water, that means the average yearly residential bill would increase by $148 in 2025-26 and an additional $187 in 2026-27.

The increase is required to address an anticipated $18.7-million deficit for the 2024-25 fiscal year and a projected $34.1-million deficit in 2025-26, the utility said. 

A chart showing how Halifax Water expects the average residential bill to change if the rate hike is approved.
A chart showing how Halifax Water expects the average residential bill to change if the rate hike is approved. (Halifax Water)

Halifax Water said it took pains to avoid large rate increases in the years following the beginning of the COVID-19 pandemic, tapping into reserves and surpluses for as long as it could, but it's now necessary to increase rates to cut into its deficit.

Rates previously rose by 3.6 per cent in December 2022 and an additional 3.6 per cent in April 2023, but Halifax Water said those hikes did not fully cover its costs.

Increased inflation, higher interest rates and aging infrastructure costs are also to blame for the proposed price hike, the utility said.

"While we managed to keep rates low for several years, it is now crucial that we apply for a rate increase to support operational sustainability, mitigate further deficits, and ensure that we can deliver high-quality water services that customers expect," said Halifax Water general manager Kenda MacKenzie in the release.

Halifax Water previously shared intentions to apply for a rate increase in March 2024, but is only getting around to doing so now.

In an FAQ on its website, the utility said the delay was a result of significant leadership changes at the executive level and other institutional capacity issues. 

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