Halifax Water Proposes Rate Increases After Pandemic Reserves Depleted

Halifax Water is seeking significant rate increases for its services as it grapples with the financial impact of the COVID-19 pandemic. The utility has proposed hikes that would raise the average residential bill by 16.2 percent in the 2025-2026 fiscal year and by 17.6 percent in the following year. According to a spokesperson for Halifax Water, this request comes after the utility maintained rates at “artificially low” levels during the pandemic.

Communications manager Jeff Myrick explained to 95.7 NewsRadio that Halifax Water relied on its reserves and surpluses to keep rates manageable throughout the pandemic. “Unfortunately, all the reserves and the accumulated surpluses are now over; we don’t have that anymore,” he stated. As a not-for-profit utility, Halifax Water operates under a cost of service model, which means the charges must reflect the actual cost of providing services to customers.

The proposed rate increases have sparked considerable opposition from various stakeholders, including Halifax Mayor Andy Fillmore and local businesses such as Oland Brewery. Public hearings on the rate hike are set to commence on Monday and are expected to continue until September 19, 2025. These discussions will provide a platform for residents and business owners to voice their concerns regarding the financial adjustments.

The proposed changes come at a time when many residents are still recovering from the economic challenges posed by the pandemic. With the cost of living continuing to rise, the timing of Halifax Water’s rate increase has drawn scrutiny. Critics argue that the utility should explore alternative funding strategies rather than imposing significant rate hikes on consumers.

As the public hearings approach, the utility faces the challenge of justifying its need for increased rates while addressing the concerns of the community. The outcome of these discussions may have lasting implications for Halifax Water and its customers in the coming years.