Halifax Water kept rates ‘artificially low’ during pandemic, spokesperson says

A Halifax Water spokesperson says the utility kept rates “artificially low” during the pandemic, and that’s why it’s asking for higher rates now.

The utility is asking for a rate increase that would see the average residential bill go up by 16.2 per cent in 2025-2026 and by 17.6 per cent in 2026-2027.

Halifax Water communications manager Jeff Myrick told 95.7 NewsRadio that, during the COVID-19 pandemic, the utility kept rates artificially low by digging into its reserves and surpluses.

“Unfortunately, all the reserves and the accumulated surpluses are now over; we don’t have that anymore,” he said. “And as a not-for-profit utility, we are funded through a cost-of-service model. So whatever the cost of providing our services to our customers, that’s the charge we have to come up with.”

The rate hike application has been met with plenty of pushback, including from Halifax Mayor Andy Fillmore and Oland Brewery.

Public hearings will begin on Monday, and Myrick says those could run until Sept. 19.

Utility blames inflation

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.”