|
The role of Watermove
|
|
Return to top
|
|
To facilitate water trading by establishing a fair, transparent process that
will provide market information for people seeking to trade water. Watermove
will conduct trading throughout Victoria and Southern New South
Wales.
|
|
| |
|
How Watermove works
|
|
Return to top
|
Watermove conducts water exchanges for all water trading zones in Victoria
where trading rules have been defined.
A trading zone defines the physical boundaries to, from or within which water
may trade. Maps, zone boundaries, zone rules, exchange rates, products that may
trade within a zone, Watermove trading opportunities and other trading
information for trading zones are detailed under
Trading Zone Profiles.
Traders must submit original offer forms to Watermove. Offers must define the
trading zone, volume for trade in megalitres, price per megalitre and the
number of exchanges for which the offer is valid.
Eligible offers will be included in an exchange for the relevant trading zone.
Watermove will conduct the exchange each Thursday (unless the exchange date is
changed due to a public holiday) and determine a pool price for each trading
zone where trade can occur.
Successful sellers will only receive a price equal to or higher than their
offer price. Successful buyers will only pay a price less than or equal to
their offer price.
No human intervention occurs in the price determination process, adjustments to
volumes or balloting. An independent party, the Water Exchange Controller, who
is not permitted to be an owner or trader of water, supervises the integrity of
the exchange.
|
|
| |
|
Calculation of the pool price
|
|
Return to top
|
Watermove will calculate a pool price for all trading zones where trade can
occur. All successful sellers and buyers within a trading zone will receive the
same pool price.
Sellers will be considered on an ascending price basis. The lowest priced
seller within a trading zone shall be the first seller eligible to trade. The
highest priced seller within a trading zone will be the last seller eligible to
trade. The pool price for a trading zone will be greater than or equal to the
sell price offered by successful sellers.
Buyers will be considered on a descending price basis. The highest priced buyer
within a trading zone shall be the first buyer eligible to trade. The lowest
priced buyer within a trading zone will be the last buyer eligible to trade.
The pool price for a trading zone will be less than or equal to the buy price
offered by successful buyers.
If a megalitre limit is set on the volume that may be traded in a particular
zone then this will be the maximum amount of water that may be traded for that
zone.
If no megalitre limit is set, Watermove will calculate the volumes to be
traded and the pool price by determining the price at which the largest volume
of water will be traded while still ensuring that successful sellers receive a
price greater than or equal to their offer price and successful buyers receive
a price less than or equal to their offer price.
The pool price calculated shall apportion any price benefits equally between
successful sellers and buyers.
Watermove shall reduce the volume sold by successful sellers or purchased by
successful buyers in order to achieve the maximum total volume in the pool.
This adjustment to volume shall only affect one seller or buyer in each
exchange. If an offer has its volume reduced and the offer is still eligible
for future exchanges the remaining volume will be carried forward as an
eligible offer for the next exchange.
Where more than one seller or buyer have nominated the same price and there are
insufficient volumes to satisfy all of those sellers or buyers, the system
shall conduct a random, computerized ballot to determine the successful
seller(s) or buyer(s) at that price.
|
|
| |
|
Independent Audit
|
|
Return to top
|
A party independent to Watermove supervises each exchange. The Water Exchange
Controller is selected by tender and cannot be an owner or trader of water.
The Water Exchange Controller checks and confirms that:
-
Pool prices are properly calculated.
-
Volumes determined and any adjustments to volumes are correct.
-
Exchanges are conducted in accordance with Watermove's operating rules.
-
All traders had equal and fair access.
-
Offers listed on the exchange are genuine.
The Water Exchange Controller is required to sign a declaration that each
exchange has been conducted in accordance with the operating rules for
Watermove.
|
|
| |
|
Lodging of offers
|
|
Return to top
|
|
Original Offer forms must be received by Watermove by 12 Noon Monday to be
eligible for the next exchange.
Offer forms can be downloaded from Trading Forms.
Inaccurate or incomplete offers will need to be corrected before Watermove can
accept them for trade. Accordingly, inaccurate or incomplete offers will not be
eligible for an exchange until they have been corrected or completed.
|
|
| |
|
Confidentiality
|
|
Return to top
|
All trades made through Watermove will be confidential.
Watermove will publish the ML offered and the offer price against the Offer
Number that is unique to each printed offer form. Traders will be able to
compare their performance with other traders by checking against the Offer
Number.
|
|
| |
|
Customers eligible to trade
|
|
Return to top
|
People who can be supplied by the following water authorities can trade on the
exchange:
-
Department of Infrastructure Planning and Natural Resources (temporary trading
only)
-
First Mildura Irrigation Trust
-
Goulburn-Murray Water
-
Grampians Wimmera Mallee Water
-
Lower Murray Urban and Rural Water Authority
-
Murray Irrigation Limited (temporary trading only)
-
Southern Rural Water
If you need further information on whether you are eligible to trade on
Watermove please call us on 1300 850 099.
|
|
| |
|
Products
|
|
Return to top
|
Please find below a definition of each product that can be traded on Watermove.
Water Allocation
(This is applicable to unbundled customers (previously Irrigation District Customers and Regulated Diverters) of Goulburn-Murray Water, Lower Murray Water and First Mildura Irrigation Trust).
A trade of Water Allocation changes the amount of allocation available for use in the current season, but does not affect ownership of the Water Share. The traded allocation reverts back to the seller’s Allocation Bank Account in the next season.
Water Share
(This is applicable to unbundled customers (previously Irrigation District Customers and Regulated Diverters) of Goulburn-Murray Water, Lower Murray Water and First Mildura Irrigation Trust).
A transfer of Water Share changes the ownership of the Water Share and therefore affects who receives the seasonal allocation from the Water Share. Once the Water Share ownership is transferred, the new owner receives all future seasonal allocation increases; the previous owner retains any seasonal allocations made before the Water Share was transferred. Once transferred, the Water Share does not revert back to the seller.
Temporary Water
(This is applicable to all customers other than unbundled customers (previously Irrigation District Customers and Regulated Diverters) of Goulburn-Murray Water, Lower Murray Water and First Mildura Irrigation Trust).
A transfer of Temporary Water changes the amount of entitlement available for use in the current season, but does not affect ownership of the entitlement. The transferred entitlement reverts back to the seller’s licence in the next season.
Permanent Water
(This is applicable to all customers other than unbundled customers (previously Irrigation District Customers and Regulated Diverters) of Goulburn-Murray Water, Lower Murray Water and First Mildura Irrigation Trust).
A transfer of Permanent Water changes the ownership of the entitlement and therefore affects who receives the seasonal allocation from the entitlement. Once transferred, the entitlement does not revert back to the seller.
Details on the products that can be traded in each trading zone are defined in
Trading Zone Profiles.
|
|
| |
|
Prices for Water Allocation/Temporary Water
|
|
Return to top
|
Watermove will not provice advice on the price at which traders should offer to sell or
buy Water Allocation/Temporary Water
There are a number of matters that traders could consider when determining offer prices. These
matters include:
-
Seasonal allocation compared with previous seasons.
-
Water use in current season compared with previous seasons.
-
Gross margins or likely returns that potential traders could receive from using the water.
-
Cost of alternatives. (e.g. dairy farmers buying feed).
-
Prices paid for water in the trader's region and/or trading zone.
-
Prices paid for water in other regions and trading zones.
-
Price trends for previous seasons, particularly in regard to price
volatility at the opening of the irrigation
season and towards the end of the season.
-
Volumes available for sale or to buy in the region and/or trading zone.
-
Tariff structure for water and whether any delivery charge will apply to
water purchased and used.
-
Whether advice from another party may be of assistance.
|
|
| |
|
Fees
|
|
Return to top
|
|
- Temporary successful buyers
The buyer will pay the following fees
within 7 days of the successful exchange:
a) An exchange fee of $80.00, plus GST
of $8.00; and
b) 1% of the total purchase value or
$600.00 maximum fee, plus GST of $60.00; plus
c) the purchase price for the water
allocation / water right.
Subject to Ministerial / Water Authority
consent being obtained:
a) where the purchase price is $10,000
or less, Watermove shall notify the relevant Water Authority the
same day to transfer the water allocation / water right to the
buyer.
b) where the purchase price is greater
than $10,000, Watermove shall notify the relevant Water Authority
the same day following payment of the purchase price in full to
transfer the water allocation / water right to the
buyer.
-
Temporary successful sellers
The
following fees and charges will be deducted from payments made to successful
sellers.
a) 3% of the total sale value
achieved at exchange or $60.00 minimum fee, plus GST of $6.00, or $600.00
maximum fee, plus GST of $60.00; or
b) $4.00 per megalitre, plus GST of
$0.40, for each megalitre sold if the volume of water offered for sale is
reduced during an exchange, or the maximum fee, whichever is the lower; plus
c) The transfer fee to the Minister
/ Water Authority that will deliver the water.
Withholding
Tax at 48.5% will apply on the total sale price if the seller’s ABN is not
supplied. Seller’s who are ABN exempt need to provide a written declaration in
the form of a “Statement by a Supplier” form.
|
|
| |
|
Exchange calendar
|
|
Return to top
|
Watermove may change the deadlines for submission of offers, cancellation of
offers and operation of exchanges to allow for public holidays.
Normally the exchange will operate as follows:
-
Cut-off time for submission of offers 12:00 Noon, Monday
(E.S.T.)
-
Cut-off time for cancellation of offers 12:00 Noon, Wednesday
(E.S.T.)
-
Operation of exchange 10:00 AM Thursday (E.S.T.)
-
Notification of results, including news release 12:00 Noon,
Thursday (E.S.T.)
Offers will not be eligible for an exchange until missing information has been
provided or incorrect information has been corrected.
Details on the products that can be traded in each trading zone are defined in
Trading Zone Profiles.
|
|
| |
|
Privacy Policy
|
|
Return to top
|
|
|
| |
|
General Conditions, Disclaimer and Copyright
|
|
Return to top
|
|
|
| |
|
Terms and Conditions
|
|
Return to top
|
|
|
