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MID Allocation Trading Strategy

Objective

The objective of allocation trading is to:

  • maximise revenue
  • provide more water for production (to grow economic output for the region).

Revenue can then be directed into value adding activities for customers such as irrigation modernisation or price reductions, while the additional water will grow economic output for the region.


Volume Available

The volume of water shares available is as follows:


Leading Works Water Validated

HRWS – 2,881

LRWS – 2,514

1,257


Less 2015 Auction Water Shares Sold

HRWS – 600

LRWS – 523.4

261.7


Less 2015 Shelf Price Water Shares for Sale

HRWS – 200

LRWS – 174.5

87.3


Less 2016 Auction Water Shares for Sale

HRWS – 600

LRWS – 523.4

261.7


Less 2016 Shelf Price Water Shares for Sale

HRWS – 200

LRWS – 174.5

87.3


Water Shares Remaining for Allocation Sales in 2015-16

HRWS – 1,281

LRWS  – 1,117.8

558.9


Volume to be Released for Sale

Early Season

10% of water in our allocation bank account


December

40% of water in our allocation bank account


January

25% of water in our allocation bank account


February

all remaining water in our allocation bank account


Sale Process

SRW shall:

  •  Sell via a public tender;
  •  Allow bids from a minimum of 5ML up to a maximum of the total volume offered;
  •  Sell the water to the highest bidder;
  •  Provide no reserve or floor price; or
  •  On line auction
  •  Release the full volume in one lot or multiple volumes for smaller volumes
  •  Sell the water to the highest bidder;
  •  Provide no reserve or floor price.

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