Halifax Water’s proposed rate adjustments are being challenged by interveners who argue that even with a significant reduction from the initial request, the new proposal remains unreasonably high. The consumer advocate appointed by the board noted that while Halifax Water is making progress in balancing cost recovery and affordability, there are still concerns.
Originally seeking two rate hikes totaling over 35% between January and April 2026, Halifax Water was instructed by the regulator to revise its proposal due to the potential for “rate shock.” The utility responded with a modified plan for smaller increases that would amount to approximately 18% over the same period.
Consumer advocate David Roberts expressed reservations about the revised proposal, indicating that it may still lead to “rate shock.” While refraining from recommending acceptance or rejection, Roberts emphasized the need for new rate strategies to prevent steep hikes in the future. He highlighted actions such as seeking relief from certain payments to Halifax Regional Municipality and exploring ways for HRM to assist in addressing the utility’s financial challenges.
Halifax Water justified the rate adjustments by citing inflationary pressures and the necessity for infrastructure upgrades, stating that keeping rates artificially low post-pandemic is unsustainable. Roberts acknowledged the importance of infrastructure improvements but stressed the importance of maintaining reasonable and affordable rates for customers.
The concerns raised by the consumer advocate were echoed by Rental Housing Providers Nova Scotia, urging the board to limit the 2026 increase to 10% and to engage in rate negotiations with stakeholders for the following years. The group emphasized that the proposed rates are excessive, significantly exceeding current inflation rates.
Killam Apartment REIT, a prominent landlord in the province, also expressed apprehension about the revised rates, highlighting potential strains on household affordability.
A decision on the revised rates is anticipated in early January, with stakeholders closely monitoring the outcome.