Halifax’s water utility officials acknowledged on Monday that they had not taken into account the potential impact on low-income households when proposing a 36% rate increase over a two-year period. The utility had requested the rate hike to address the need for infrastructure upgrades and the escalating costs of labor and materials.
During a public hearing before the regulatory board, Halifax Water representatives disclosed that their internal affordability studies had not been updated since 2017. Chief Financial Officer Louis de Montbrun agreed that revising the affordability study was necessary in response to questioning.
The utility aims to implement rate increases based on consumption rather than fixed charges to allow consumers to better manage their water usage and mitigate the impact on their bills. However, consumer advocate David Roberts criticized the lack of consideration for the potential burden on low-income households.
Various stakeholders, including businesses, residents, and government officials, expressed strong opposition to the proposed rate hike, labeling it as a “rate shock.” Concerns were raised about the affordability of water for residents, with many fearing significant cost increases that could strain their budgets.
Businesses like Oland Brewery and Killam Apartment REIT voiced their concerns at the hearing, emphasizing the adverse effects of the proposed rate hike on their operations and residents. Rental housing providers warned that such a substantial increase would threaten housing stability and lead to higher rents, particularly impacting individuals on fixed incomes.
Amidst the backlash, Halifax Water rejected a proposal for gradual rate increases over five years, opting instead to suggest ways for customers to reduce their water consumption. The rate application hearing is ongoing and expected to continue throughout the week.
