MID Water Distribution Share
Water Share Distribution
Southern Rural Water has been investing in modernising the Macalister Irrigation District to generate water savings and improve services for its customers.
Following extensive consultation with customers, in 2014 Southern Rural Water’s Board approved a strategy for the use of water savings from its investment in the MID2020 project. This included auctions, shelf-price sales and a proportional distribution of water shares.
We’ve now held three auctions and shelf price sales, and we are now offering water shares to eligible customers, who will be receiving their letters of offer in the coming weeks. This distribution is the equivalent of 5% of water entitlements in the MID, which equates to 6,601ML.
The distribution is available only for those irrigation customers who hold both a Delivery Share and Water-Use Licence in the Macalister Irrigation District, as they have contributed towards the project costs. The offer is based on a proportion of delivery share entitlements.
For more details, see the Frequently Asked Questions below
What happens next
We are currently collated all the responses and contacting customers to keep them up to date with progress of when the water shares will become active. The registration process may take 6 to 8 weeks to complete.
All declined shares will be added to future water share auctions or shelf-price sales. The money from all auctions and shelf price sales is reinvested into the modernisation program on behalf of SRW customers, to keep prices as low as possible.
If you have any further questions about this letter of offer, please contact Pam Crawford, Customer Relations Project Officer or Gavin Prior, Operations Supervisor, on 1300 139 510.
Q and A
Q: What is the background to the distribution of water shares to customers?
A: Southern Rural Water, with funding support from the Victorian Government, has been modernising the Macalister Irrigation District to generate water savings and improve services. As part of extensive consultation with customers, SRW committed to return these savings to MID customers.
In 2014, the SRW board approved a program of auctions, shelf-price sales, and a distribution of water shares, equivalent to 5% of water entitlements in the MID.
Three years of auctions and shelf-price sales from MID2030 Phase 1A of the project are now complete; the next step is to distribute water shares totalling 6601ML to customers.
Q: Who is eligible to receive the offer?
A: Irrigators who own delivery shares with Water Use Licences in the MID are eligible to receive the water share offer, proportional to their delivery share. This is because you are contributing towards the upgrade of the infrastructure in the district.
Q: Where have the savings come from?
A: The water shares have been created through water savings generated from modernisation projects within the MID, primarily MID2030 Phase 1A. These include outlet replacements, channel modernisation through reduced outfalls and our new balancing storage at Denison, all of which allow the system to operate more efficiently.
Q: How have the shares been created?
A: Completed modernisation works are audited, validated independently and then created as shares on approval from the Minister for Water, Lisa Neville.
Q: Do I have to take the shares?
A: No, you can choose to decline the offer, but you must notify us of this decision to ensure we know what everyone’s preferences are.
Q: Can I sell the shares that I’ve been offered?
A: Yes, you can. Once the shares are registered, you are free to sell or trade the water shares as you would any other shares in the MID.
Q: Do the shares have associated delivery share?
Q: I don’t want any low reliability shares, can you give them to someone else?
A: No, accepting the offer means accepting both high and low reliability water shares, where applicable. They cannot be separated.
Once the shares are created in your name, you may wish to trade these shares, either High Reliability Water Shares or Low Reliability Water Shares.
Q: Will river customers receive this offer?
A: No. Only customers who own delivery share and a Water Use Licence in the MID are eligible. This is because these customers pay for the irrigation supply system (channels and other assets) that are being upgraded.
Q: What happens to any water shares not taken up from this distribution?
A: Any shares not accepted will be added to future water share auctions or shelf-price sales. The money from these sales will be reinvested into the modernisation program on behalf of SRW customers to keep prices as low as possible.
Q: Can I transfer the offered shares to Rainbow Creek, the Thomson or Macalister Rivers?
A: Yes, you can. Just like any other water share, once the water shares are created, they can be sold or transferred, including allocation associated with them.
Q: What will the offered shares cost me?
A: There is no upfront cost for the water shares. The additional water shares will be added to your account and attract annual fees.
Your first bill for the new shares will be in October 2018. The current fee for water shares is $13.20 per megalitre for High Reliability Water Shares and $6.60 per megalitre for Low Reliability Water Shares.
Q: Will the water shares come with 2017-18 allocation?
A: Yes. Because allocations will be reset following Glenmaggie spilling, the new shares will attract a 100% allocation of High Reliability Water Shares for 2017-18. They will also attract any Low Reliability Water Shares if they are allocated this season. From the 2018-19 season, they will attract normal allocation of High Reliability Water Shares and Low Reliability Water Shares.