Update on Goulburn IVT Account
The Goulburn system’s inter-valley trade (IVT) account currently account owes about 274 GL to the Murray system.
Goulburn, Campaspe and Loddon systems cannot trade to the Victorian Murray system, New South Wales and South Australia if the volume traded out but not yet delivered to the Murray exceeds 200GL. The Murray Darling Basin Authority (MDBA) is the authority in charge of calling on the Goulburn system to deliver water to Murray customers. When the MDBA starts to call on delivering the water from the IVT account, the 74,000 megalitres must be repaid first to take the IVT limit under 200GL before trades can be permitted.
Historical Goulburn System IVT Deliveries
Below is a table containing the volumes delivered in gigalitres each month from the Goulburn inter-valley trade account to the Murray system over the last 5 years. (Source GMW)
Current positon on the Goulburn IVT account
The statement from GMW on 4th December 2017 states
“With widespread rainfall across Victoria in early December, IVT deliveries to the Murray system are unlikely to be required for the next few weeks. The decision to call on IVT delivery to the Murray system will be revisited later in December. The timing of transfers of inter-valley trade water is highly dependent on catchment conditions and system demands. Plans for transfers of water are subject to change at any time.”
Based on this information, if the MDBA started drawing down the IVT in January, with the highest volume in the last five years drawn down in January being 46.2 GL, it will take some time to repay the 74 GL.
How Does the IVT Account Affect Trade?
Customers who are waiting to move their allocation from the Goulburn to the Murray system need to factor what month they intend to use the water and whether they are prepared to wait and see when/if trade restrictions open up.
Customers who are wanting for the allocation markets to open up between the Goulburn and the Murray systems need to be aware of the IVT limits, and can do this by keeping in touch with us here at Integra or by visiting the following sites for more information: Allocation trading – Water Register and scrolling down to Allocation Trade Opportunities and Limits.
For the time being Goulburn water is limited to trading only in the Goulburn system. But bear in mind, even when limits are reached, new trade opportunities can present and so customers must be ready to act on short notice.
Developing a Water Strategy
At Integra Water Services, we like to educate our customers on the factors influencing the market and then support them in developing a comprehensive strategy that best suits their water needs.
As we head into the summer months, we encourage farmers to consider the following items when creating their water strategy:
- Take time out to assess your water portfolio and what its current worth is in today’s market and take a position on whether you want to trade now or wait.
- Focus on your strengths to maximise return on your water investment and likewise, know your weaknesses when it comes to managing your water needs. If you have no interest in researching or keeping on-top of water prices, then align yourself with Integra and we will take the time to understand your business and your water requirements.
- Incorporate some flexibility so you’re prepared to capitalise on opportunities when they present. This may include letting us know early what your water requirements are over the summer and your autumn goals and objectives, so we can better understand your business requirements.
A comprehensive water strategy combined with an ongoing knowledge of market price drivers and the volume of unused water available will place you in the best position to make wise water investments this summer.
Need some help? That’s what we’re here for.
At Integra Water Services we recognize the importance of water to your business. With over 17 years of experience trading water we have a good depth of knowledge about what’s happening in the market. Here at Integra we are happy to share this knowledge with our clients to assist them in making the best decision possible.
If you would like to talk more about the trade restrictions currently in place or about trading in general, then give us a call on (03) 5824 3833 or email us at firstname.lastname@example.org and we will get back to you.