The Nova Scotia Utility and Review Board ruled Thursday on certain aspects of the so-called ditch tax — a controversial fee for stormwater entering ditches and culverts maintained by Halifax Water.

The UARB said in a decision that fees for commercial property customers will go unchanged for now. Those customers will continue to be charged based on the size of their impervious area — an area that prevents or limits the flow of stormwater, such as a driveway or parking lot.

The board also mandated that residential impervious areas under 50 square metres in size won't be charged the fee.

Halifax Water is seeking to further change how residential customers pay the fee from the current average charge for properties big and small, to a five-tier system.

Halifax Water spokesman James Campbell said a separate application covering such changes will be filed later this year and will likely be reviewed in 2017.

The stormwater fee, which has flip-flopped from tax bills to water bills, has been a bone of contention for thousands of Halifax Water customers who filed complaints.

The board said in its decision it is currently dealing with 10 times more complaints against Halifax Water than against Nova Scotia Power, which has a larger customer base.

5 tiers

Some homeowners in Halifax Water's service boundary may get a break on the stormwater charges, Campbell said.

The utility's new proposed residential fee tiers are based on the size of impervious areas on a property:

Impervious areas under 50 square metres will not be charged

Up to 200 square metres: $11 a year

200 to 400 square metres: $22 a year

400 to 600 square metres: $44 a year

600 square metres or larger: $66 a year

"If you're receiving stormwater services, whether directly or indirectly, you should pay for that benefit," Campbell said.

Pamela Lovelace has campaigned on behalf of homeowners over the issue for two years and is now running for Halifax council. She said the tiered system "over complicates the issue."

"What we see is a water utility trying to appear that their charges are fair," she said.

Defining the customer

In its decision, the utility board also defined what a customer actually is:

If stormwater flows from a property into the Halifax Water system.

If the property has to be accessed directly by a driveway that crosses a ditch.

Lovelace said the board is missing out on more basic issues, such as an agreement between customer and utility that would allow property owners to define what their service will be.

"Within the stormwater service system of Halifax Regional Municipality, for those individuals, the service agreement exists between Halifax Water and Halifax Regional Municipality," Lovelace said.

"What the Utility and Review Board has actually done is mandated that we are now customers based on their definition."

Commercial customers

Both Dartmouth Crossing and the Halifax Port Authority were represented at the UARB's hearing in February.

They wanted Halifax Water to introduce a credit system, which would incent the construction of retention ponds or green roofs to hold onto the stormwater before it's drained out through Halifax Water's system.

The board said it "understands the concerns" of those two parties, but too much is unknown how that system could affect rates.

Campbell said the utility will heed the board's recommendation to work with representatives from Dartmouth Crossing and the Halifax Port Authority to develop a credit system before it files its next application with changes to its cost of service later this year.

Handling complaints

In its decision, the UARB said Halifax Water must also immediately begin the process of hiring an independent dispute resolution officer to handle customer complaints.

Currently, Halifax Water customers must further their complaints with the UARB.

"In fact, we've already been in discussions," said Campbell. "On that issue we've met with some of our friends at Nova Scotia Power who currently have a dispute resolution officer.

"We're going to get that process underway."