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Published: 28 June 2019   •   Media release

The Murray–Darling Basin Authority (MDBA) from July 1 will trial new ways to account for water trade between states in the Murray system.

The trials have been developed in conjunction with New South Wales, Victoria and South Australia.

MDBA Executive Director of River Management Andrew Reynolds said the trials aim to streamline the way water trades are accounted for in state bulk water accounts, and aim to increase opportunities for water trades across state borders.

The trade-adjustment trials modify bulk-level accounting processes. There will be no change to the processes for retail trades between water market participants.

"The MDBA and the states have been working on ways to improve the way we make trade adjustments to account for trades across state borders," Mr Reynolds said.

"For example, when someone sells water in NSW to a buyer in Victoria, that exchange of water needs to be accounted for in the volumes available for use in each state. So the trade adjustments are made to match the volumes of interstate retail trades.

"Up to now, the practice was to make all trade adjustments in Hume Reservoir, which was a simple method that suited the small to moderate volumes of inter-state trade seen historically.

"The trials mean the adjustments will be made closer to the location of trades, rather than only in Hume Reservoir. They will also be made more quickly to better align with trade delivery.

"These improvements are expected to reduce the frequency of inter-state trade closures, thereby increasing opportunities for water trades."

The trials will run for three years.

More information is available on the MDBA website.


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