Commonwealth Environmental Water Office
The following portfolio management statement is intended to provide guidance on the Commonwealth Environmental Water Office's potential approach to portfolio management in the Lachlan catchment for the remainder of 2012-13. This statement will be updated during the year as the approach to portfolio management is adjusted in response to actual seasonal conditions. The next routine update is anticipated in November 2012, however further updates may be released in response to a significant change in circumstances.
Photo by Stephanie Secomb © CEWO
Date issued: 07 September 2012
Recent Water Availability
The Lachlan catchment experienced high inflows in 2011-12 with general security accounts being reset to 136 per cent of entitlement in March 2012. Public water storages are more than 95 per cent full.
|Entitlement type||Entitlement Held (GL)||Entitlement Held – Long-term Average Annual Yield (GL)||Carryover from 2011-12 (GL)||Water Available (GL)||Forecast Maximum Water Available in 2012-13(GL)|
Note: Lachlan (High Security), maximum allocation balance of 100%, no carryover. Lachlan (General Security), maximum allocation balance at any time of 200%, maximum carryover of 200%, maximum annual use of 100%.
Commonwealth environmental water available in 2012-13
The opening balance for 2012-13 was 117 GL, including an opening allocation of 100 per cent to high security entitlement. No other allocations have been received in 2012-13 at the time of this Statement's issue.
These allocations are significantly higher than the long-term average, which means that the Commonwealth Environmental Water Office has, like all other entitlement holders, substantial volumes of water available.
Allocation water can be used, traded or carried over to subsequent years depending on the nature of the source entitlement and the legal framework which applies to the management of Commonwealth environmental water. The total volume available will be limited to a maximum of 87 GL, as annual use of allocations to general security entitlement is limited to 100 per cent of the entitlement volume.
Water use options in 2012-13
The Commonwealth Environmental Water Office has developed water use options for up to 45 GL which may vary depending on seasonal and operational considerations. Further information on environmental water use options in the Lachlan is available at Annual Water Use Options 2012-13: Lachlan River Catchment. Information on water use will be updated on the website as decisions are made.
Trade in 2012-13
The Water Act 2007 provides for the trade of Commonwealth environmental water (allocations and entitlements) and specifies the conditions under which sales may occur.
In the Lachlan there is potential to trade allocations in the current situation of high water availability, if there were to be a demand for purchase of that water in this catchment. However, given high water availability and all entitlement owners having high allocation it is not envisaged that this demand would materialise in the short term. Accordingly it is not envisaged that the Commonwealth Environmental Water Office will trade allocation in the short term.
The Commonwealth Environmental Water Office will provide further information to the water market prior to undertaking any trading action.
Carryover into 2013-14
The Commonwealth Environmental Water Office currently forecasts that it will carryover between 72 GL and 121 GL into 2013-14, depending on the volume of water delivered for environmental purposes in 2012-13. These figures assume no trade of allocations and no change in water availability due to account resets caused by dam spills.
Proportion of Lachlan irrigation entitlements held by Commonwealth (by total long-term average annual yield)
Carryover of Commonwealth environmental water as a proportion of Lachlan's major storage capacity