Halifax Water seeking rate hike to deal with growing budget deficit
Halifax Water, the utility responsible for providing water services in Nova Scotia, is facing a significant budget deficit and is seeking approval from the Nova Scotia Regulatory and Appeals Board for rate increases over the next two fiscal years. The proposed rate increases include a 16.2% hike in the average residential bill for the 2025 fiscal year and an additional 17.6% increase for the 2026 fiscal year.
According to Halifax Water, these rate hikes are necessary 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 has been struggling to cover its costs, despite previous rate increases of 3.6% in December 2022 and another 3.6% in April 2023.
Various factors have contributed to the need for higher rates, including increased inflation, higher interest rates, and the costs associated with maintaining and upgrading aging infrastructure. Halifax Water has been using reserves and surpluses to avoid large rate hikes in the years following the COVID-19 pandemic, but it is now necessary to increase rates to address the growing deficit.
Kenda MacKenzie, the general manager of Halifax Water, emphasized the importance of the rate increase in maintaining operational sustainability and delivering high-quality water services to customers. The utility had initially planned to apply for a rate increase in March 2024, but faced delays due to significant leadership changes and institutional capacity issues.
If approved, the average yearly residential bill is expected to increase by $148 in 2025-26 and an additional $187 in 2026-27. Halifax Water has provided a detailed explanation of the rate increase on its website and is seeking public feedback on the proposal. Customers can visit the Halifax Water website for more information on the rate increase and how it will impact their water bills.
Overall, Halifax Water is taking proactive steps to address its financial challenges and ensure the long-term sustainability of water services in Nova Scotia. The rate increases, if approved, will help the utility cover its costs and continue providing reliable and safe water services to residents.
