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.