Pending approval, the average water, wastewater and stormwater residential customer would see a yearly increase of approximately $148 in 2025/26 and an additional $187 in 2026/27.
Halifax Water has submitted a General Rate Application (GRA) to the Nova Scotia Regulatory and Appeals Board (NSRAB). As part of the application, the municipally owned utility is seeking approval for a 16.2 per cent increase in average residential bills in 2025/26 and a 17.6 per cent increase in 2026/27.
Halifax Water operates on a cost-of-delivery model with no profit built into rates. However, it is facing significant operating deficits projected to be $18.7 million for 2024/25 and $34.1 million for 2025/26. This situation is attributed to increased inflation, rising interest rates, depleted reserve funds, aging infrastructure and depreciation. Measures must be taken to tackle these financial challenges and maintain reliable water services.
“We understand that requests for rate increases come at a time when many households are already feeling the pinch of rising costs, but it is unavoidable. Operating as a not-for-profit, we require the proposed rates for strategic investments to continue ensuring safe and dependable water services. Without them, we risk long-term financial instability that could jeopardize the quality of services provided to the community,” says Kenda MacKenzie, General Manager and CEO of Halifax Water.
During and coming out of the global COVID-19 pandemic, Halifax Water intentionally suppressed rate increases by tapping into its reserves and accumulated surpluses. While these decisions were appropriate at the time, they have increased Halifax Water’s current financial deficit.
“While we managed to keep rates low for several years, it is now crucial that we apply for a rate increase to support operational sustainability, mitigate further deficits, and ensure that we can deliver high-quality water services that customers expect,” says MacKenzie.
Based on today’s application to the NSRAB, customers and other interested parties will now have an opportunity to participate in the regulatory review process.
A rate application fact sheet is below. Please visit halifaxwater.ca/2025-rate-application for more information on the proposed rate, rate application details, and water conservation tips.
