All parties in the provincial government are unhappy with a proposed rate hike from Halifax Water.

Earlier in May, the utility requested to raise rates for the average customer by $148, about 16.2 per cent of an increase a year for 2025-26. They would raise it another $187, about 17.6 per cent, in 2026-27, according to a news release.

Liberal MLA Ian Rankin said on Tuesday this increase would make Halifax Water customers pay some of the highest rates in the country.

“While I understand the pressure Halifax Water is under to modernize aging infrastructure and meet the demands of a growing population, an increase of this magnitude isn’t something many households can absorb right now,” wrote Rankin.

Rankin sent a letter to Minister Tilley, asking him to use federal funding to pay for some of Halifax Water’s infrastructure upgrades.

NDP MLA Susan LeBlanc said the province should implement a low-income water rate.

She also said landlords should be able to apply to increase rents outside of a typical consumer price index increase, in case water utility bills go up.

“The fact is, people are very worried about any more increases, and everyone’s at the edge, or many people are at the edge, and people just can’t afford more a low income rate,” said LeBlanc on Thursday.

The utility said they do not build profits into their rates and instead charge for the cost of delivering the services.

But the utility said it faces a projected deficit of $18.7 million for this year, and $34.1 million 2025-26, and can only make up more money by raising rates.

Province plans to intervene in rate hike

John Lohr, Minister of Municipal Affairs, said on Thursday the government would intervene when the rate hike application goes to the regulatory and appeals board.

“As a government, we’ve taken steps ourselves to reduce the tax burden on Nova Scotians, and we just think this is a time when affordability and household costs are significant, and so we’ll be just bringing that message to the regulatory appeal board,” Lohr said.

When Lohr was asked if the province would subsidize the necessary infrastructure upgrades with Halifax Water, he said the province has already invested significantly in water and waste water systems in more than just Halifax.

Social Development Minister Scott echoed the sentiment on Thursday, saying he was concerned that utility costs continue to rise and the people most affected tend to have the lowest incomes, renters who will get costs passed down to them from their landlords. He said higher rents would be even worse when the market is finally starting to stabilize, with the vacancy rate trending up.

“People say, well, it’s not that much money. It’s in the hundreds of dollars. And sometimes hundreds of dollars can make all the difference for those that are the lowest income and the most vulnerable in our society,” said Armstrong.

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