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 Macquarie catchment for 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.
Macquarie River catchment
Photo by Simon Banks © CEWO
Date issued: 07 September 2012
Recent Water Availability
The Macquarie catchment experienced high inflows in 2011-12 with general and high security accounts being reset to 100 per cent of entitlement in May 2011. Burrendong Dam is currently full and Windamere Dam is around 60 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)|
- Macquarie and Cudgegong (General Security), allocation account holding limit of 200% of entitlement applies to carryover plus allocations, maximum carryover of 100% of entitlement, no annual use limit.
- Forecast Water Available in 2012-13 includes the forecast registration of some additional general security entitlement.
- # Availability of supplementary water is subject to announcement.
Commonwealth environmental water available in 2012-13
The opening balance for 2012-13 was 121 GL, comprised of 94 GL from carryover and 27 GL from the opening general security allocation announcement of 28 per cent. A subsequent 28 per cent allocation announcement was made on 3 August however this was offset by a corresponding reduction to the volume that had been carried-over from 2011-12, due to the operation of the Water Sharing Plan's flood mitigation zone rules.
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 of water available to the Commonwealth Environmental Water Office over the course of 2012-13 is subject to additional allocation announcements. It is also subject to the timing of environmental water use relative to any further reductions applied to carryover balances.
Access to supplementary allocation has been allowed to date and is possible at other stages during the year, though less likely in lower inflow conditions.
Water use options in 2012-13
The Commonwealth Environmental Water Office has developed water use options for up to 120 GL which may vary depending on seasonal and operational considerations. Further information on environmental water use options in the Macquarie is available at Annual Water Use Options 2012-13: Macquarie River Catchment .
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.
Assuming that all planned environmental use occurs, the Commonwealth Environmental Water Office expects to have the capacity to carryover any unused allocations. In combination with the current unfavourable market conditions, this means that a sale of regulated allocation is not anticipated in 2012-13. If less environmental use occurs than is currently planned and/or market conditions improve substantially then a sale of allocation may be sought. 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.
Further information would be provided to the water market prior to undertaking any trading action.
Carryover into 2013-14
The volume of regulated allocation carried over to 2013-14 is subject to many factors, including the volume used or sold in 2012-13, the amount of any new allocation announcements and whether account resets associated with dam spills occur. Depending on the interplay of these factors, the volume that the Commonwealth Environmental Water Office forecasts to be available at the beginning of 2013-14 varies from zero to the maximum account limit. The opening balance will tend to be lower in drier inflow scenarios. This forecast will be refined over the course of the water year.
Proportion of Macquarie irrigation entitlements held by Commonwealth (by total long-term average annual yield)
Carryover of Commonwealth environmental water as a proportion of Macquarie's major storage capacity