Halifax Water asks for large rate hike amid deficit
Posted May 6, 2025 05:08:56 AM.
Last Updated May 6, 2025 11:48:36 AM.
Halifax Water says it has submitted a rate application seeking significant increases in residential water bills.
The utility is asking the provincial regulator for a 16.2 per cent increase in average residential bills in 2025-26 and a 17.6 per cent increase in 2026-27.
The ask comes as Halifax Water says it’s facing significant operating deficits projected to be $18.7 million for 2024-25 and $34.1 million for 2025-26.
The utility is attributing those challenges to issues including inflation, rising interest rates and aging infrastructure.
“Over the past several years, the utility has used accumulated reserves and surpluses to keep rates lower,” it said in a statement on its website. “As a result, rates have not been adjusted to reflect the actual cost of providing the services.”
It says the financial difficulties are due to increased inflation, rising interest rates, depleted reserve funds, aging infrastructure and depreciation, and adds measures must be taken to maintain reliable water services.
“Halifax Water understands that these challenges come at a time when many households are already feeling the pinch of rising costs, but without these investments, the utility risks long-term financial instability, jeopardizing the quality of services provided to the community,” read the statement.
