Brewery may relocate due to potential increase in Halifax Water rates

Halifax Water Proposes Significant Rate Hike for Water and Wastewater Services

Halifax Water has proposed a rate hike on water and wastewater services that could increase average residential bills by 16.2 per cent in 2025-2026 and by 17.6 per cent in 2026-2027. If implemented, the changes would make water and wastewater more expensive than at surrounding areas, including breweries like Oland Brewery.

The proposed rate hike has not been implemented yet, but it has sparked concerns among residents and businesses. These concerns have been expressed to the Nova Scotia Consumer Advocate and the Nova Scotia Regulatory and Appeals Board. Oland Brewery, in particular, has voiced its concerns in a letter to the board, calling the proposed hike "unjustifiable."

The brewery operates in a geographical disadvantage in Nova Scotia, and the proposed rate hike may make it more difficult for the company to do business there. Oland Brewery's production levels in the province may be threatened, and the company may even consider doing business in other cities due to the cost of doing business in Halifax.

The changes would take effect on January 1, 2026, and April 1, 2026. Oland Brewery's concerns about the proposed rate hike are not just about the cost of water and wastewater, but also about the overall business environment in Halifax. The company cites high power rates, unreliable service, increasing natural gas prices, and a high corporate tax rate as factors that hurt its competitiveness.

Affordable, safe, and reliable water service is considered a public necessity, not a luxury. However, residents fear they will be forced to make difficult choices between paying for essential utilities and meeting other basic needs due to the proposed rate hike. Potentially affected companies could include those in the beverage distribution and retail sectors in Halifax and other cities where Oland Brewery might expand its operations due to increased water rates by Halifax Water. This could impact local suppliers, distributors, and competitors in those markets.

The Nova Scotia Regulatory and Appeals Board will hear the application for the rate hike starting at 9 a.m. on Sept. 15. The federal and provincial governments are also working to remove internal trade barriers, which may lead companies like Oland Brewery to move production to more affordable jurisdictions. It remains to be seen how the proposed rate hike will impact Halifax residents, businesses, and the city as a whole.