Rate hikes: Halifax Water admits low-income people should have been more considered – Halifax

Representatives from Halifax’s water utility admitted on Monday that they didn’t consider how their proposal to raise rates by 36 per cent over two years would affect low-income residents.

Halifax Water applied to the province’s utilities regulatory in May to raise rates, citing a need to replace aging infrastructure and general rising costs of labour and materials.

At a public hearing before the regulatory board on Monday, Halifax water representatives said they had not updated their internal affordability studies since 2017. “I would agree it’s time to update the affordability study,” Louis de Montbrun, CFO of Halifax Water, told the hearing in response to questioning.

The utility, he said, wants to raise rates based on consumption “as opposed to fixed charges.” As a result, he said, consumers can manage their consumption and “and reduce the impact on their rates.”

David Roberts, a consumer advocate, said, “I think it’s clear from the evidence this morning that they haven’t looked closely enough at the impact this would have, especially on low-income houses.”

Reaction to the rate application from the business community, residents, and municipal and provincial governments has been swift and forceful. Multiple speakers, including Roberts, hammered Halifax Water about what they called a “rate shock.” The representatives from Halifax Water admitted that their increase, if it goes through, can be considered rate shock.

“It’s crazy. They think we’re all millionaires,” said Darryl Greg, a Halifax resident in attendance. Greg rents a condo, and said he’s worried about how much his housing costs will increase because water is included in his rent. “You can’t afford food. Now you can’t afford water … it’s too much, and we can’t pay anymore.”

Some businesses, like Oland Brewery, submitted statements to the hearing, saying the proposed hike would make it “significantly harder to do business in Nova Scotia.”

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A representative from Killam Apartment real estate investment trust, said in their opening statement that the proposed hike is unsustainable for their residents “at a time with affordability is already at a crisis point.” The statement went on to say, “rental housing providers cannot absorb increases at this rate, making them a direct threat to housing stability.”

Kevin Russell, executive director of Rental Housing Providers Nova Scotia, says an increase of this size “will cause rents to rise.”

“People, particularly those on a fixed income … this is going to hurt them dramatically,” said Russell. “(Water) is not a luxury. Water is a basic humanitarian need.”

He said his organization put forward a proposal that would see rates increase by five per cent a year over the next five years, which would give customers a chance to adjust and plan for the rising costs. That proposal was rejected by Halifax Water.

Halifax Water suggested ways in which customers could reduce their consumption levels, including by turning off the tap when brushing their teeth.

The rate application hearing is scheduled to continue for the rest of the week.

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