Halifax Water’s revised rate proposal, now at 18% over two years, is still criticized as excessive by consumer advocates and landlords in Halifax
Halifax Water’s Rate Proposal Faces Scrutiny
Interveners in Halifax Water’s rate case are informing the regulatory board that the utility’s new proposal, which reduces its initial request by nearly half, remains excessively high.
The board-appointed consumer advocate stated that Halifax Water “may be closer” to balancing necessary costs with reasonable rates, but he still has concerns.
Rate Hike Details
Halifax Water applied to the Nova Scotia Regulatory and Appeals Board in the spring for two rate hikes totaling over 35 percent between January and April 2026. The regulator indicated that this would cause “rate shock” and instructed the utility to lower the figure earlier this month.
Halifax Water then submitted a new proposal for two smaller increases that would total about 18 percent over the same time period.
Consumer advocate David Roberts wrote in a letter to the board this week that “arguably, this still amounts to ‘rate shock.’”
Future Rate Strategies
Roberts did not suggest whether the board should accept or reject the new proposal but emphasized that “new rate strategies must be employed” to avoid steep rate hikes in the future.
He highlighted several measures the board has mandated, including seeking relief from some payments Halifax Water owes to Halifax Regional Municipality and exploring if HRM can cover some of the utility’s financial shortfalls that are increasing its deficit.
Infrastructure and Affordability Concerns
Halifax Water has stated it has kept rates artificially low since the pandemic and cannot continue this practice due to inflationary pressures and the need for costly infrastructure upgrades.
Roberts acknowledged that infrastructure improvements and other expenses are essential to maintain water services at a level that “customers expect and deserve.”
However, he added that “the rates customers are required to pay to generate that revenue must be reasonable and affordable.”
Additional Concerns from Stakeholders
The consumer advocate is not alone in expressing concerns about Halifax Water’s revised rate proposal.
The landlord-advocacy group Rental Housing Providers Nova Scotia is urging the board to limit the cumulative increase in 2026 to 10 percent and to require Halifax Water to negotiate a settlement agreement on rates with stakeholders for 2027 to 2031.
Kevin Russell, the group’s executive director, informed the board in a letter that the revised rate is “far too high and represents an increase more than six times the current rate of inflation.”
Killam Apartment REIT, one of the province’s largest landlords, stated that the revised rates would still impact household affordability.
Decision Timeline
The board is expected to announce a decision regarding the revised rates in the first few days of the new year.
| Details | Initial Proposal | Revised Proposal |
|---|---|---|
| Rate Hike Percentage | Over 35% | About 18% |
| Time Period | January – April 2026 | January – April 2026 |
| Consumer Advocate’s Concern | Rate Shock | Still Rate Shock |
| Requested Cumulative Increase by Stakeholders | N/A | 10% |
| Decision Release Date | N/A | First few days of the new year |
