Commodity warrants heats up with water trading

The cool waters are setting people hearts on fire . Water is  slowly and steadily climbing up the trading charts. The government is slowly buying up  water trading licenses  and off course no more  licenses are issuing. There is a reason for that  It is becoming more scarce. The people left with the licenses are now sitting on GOLD and you do know how gold prices are  at the moment.

Water effectively is tomorrows GOLD

HUNDREDS of water trades in Victoria will be allowed from tomorrow after a 10 per cent cap on entitlements was officially granted.

Waranga_Basin_water trading australia

Water trading is going to hot up

Victorian Water Minister Tim Holding says removing the cap on non-water users will give irrigators greater choice."It also frees up water to be purchased from sellers as part of the Australian Government’s buyback program to return water to the Murray River for the benefit of the environment,” he said in a release.

The cap on the volume of water entitlements that can be owned by non-landowners had been in place since 2007. The 10 per cent restriction had existed to ease concerns that big corporate clients would gobble up vast amounts of water and control the market price.

How River Murray Water came about

From the mid-1990s, a number of factors have been influencing Australian water authorities to create more business-like arrangements for delivery water services. The two most important factors are:

  1. Separating service delivery from regulatory and resource management policy matters so as to achieve clear and effective outcomes; and
  2. Putting pricing for services on a clear basis which removes cross-subsidies, promotes efficiencies, and ensures sustainability of the assets of the business through full cost recovery.

The Council of Australian Governments when endorsing in 1994 a strategic framework for the efficient and sustainable reforms of the water industry, specifically required the Murray-Darling Basin Ministerial Council to put in place: ‘arrangements so that out of charges for water, funds for the future maintenance, refurbishment and/or updgrading of the headworks and other structures under the Commission’s control be provided.’

murray basin water trading australia

In response to these various drivers, the Ministerial Council decided that a ‘water business’ should be established with the mission:

"In accordance with the Council of Australian Governments water resource policy and Murrray-Darling Basin Commission policies, to contract with each owner of the water to provide a delivery service which generates adequate revenue to allow effective maintenance and long term replacement/creation of assets and the move towards a positive real rate of return in accordance with a timetable agreed with the owners of the business."

Following developmental work by an advisory committee, River Murray Water was established on 1 January 1998 as an internal business unit of the Commission.

A Board operating as a committee of Commission guides the activities of River Murray Water.


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