Intervenors involved in the rate case of Halifax Water have expressed concerns to the regulatory board, stating that the utility’s revised proposal, despite a significant reduction from the initial request, remains excessively high. The board-appointed consumer advocate indicated that Halifax Water may be moving towards a more balanced approach in covering necessary expenses while keeping rates reasonable. However, he emphasized lingering worries about the proposed rates.
Earlier this year, Halifax Water sought approval from the Nova Scotia Regulatory and Appeals Board for two rate increases totaling over 35% between January and April 2026. The regulator deemed this increase as “rate shock” and instructed the utility to revise its proposal. Subsequently, Halifax Water submitted a new plan featuring smaller rate hikes that would accumulate to approximately 18% over the same period.
Consumer advocate David Roberts, in a recent communication with the board, suggested that the revised proposal still could be considered as causing “rate shock.” While refraining from recommending acceptance or rejection, Roberts stressed the importance of implementing new rate strategies to prevent substantial future increases.
Roberts highlighted measures mandated by the board, such as seeking relief from certain payments to Halifax Regional Municipality and exploring potential financial support from HRM to mitigate the utility’s deficits. Halifax Water justified the need for rate adjustments due to maintaining artificially low rates during the pandemic, inflationary pressures, and essential infrastructure upgrades.
Acknowledging the necessity of infrastructure enhancements, Roberts emphasized the importance of ensuring that customer rates remain fair and affordable. Various stakeholders, including the Rental Housing Providers Nova Scotia, have raised objections to Halifax Water’s revised rates. The housing advocacy group urged the board to limit the 2026 cumulative increase to 10% and facilitate negotiations for rate agreements beyond 2026.
The board is anticipated to deliver a decision on the revised rates at the beginning of the new year.
