Murray-Darling Basin water markets inquiry - final report (part 3)

Figures 5.11A and 5.11B set out the monthly volume and proportion of allocation trades-out by the investors in comparison to the rest of the market in the Lower Murray (zones 7, 11 and 12) in the 2018–19 water year. [...] The large investors considered a range of factors when deciding which entitlements to acquire, including: the concentrations and types of industries comprising the demand for allocations assigned to the entitlement and their capacity to pay for these allocations the transferability of allocations from the entitlement trading zone to other trading zones the expected income to be generated from t. [...] In practice, this involves receiving a volume of allocations from the counterparty prior to the end of a water year and returning the net allocations to the counterparty after the start of the next water year.297 The provider of carryover capacity receives a fee for this service. [...] 177 Murray–Darling Basin water markets inquiry – Final report 5.5 The ACCC examined the temporary water allocation trading activities of the large investors The ACCC undertook a review of the allocation trading activities of the large investors for the 2017–18, 2018–19 and 2019–20 (July to November) water years in the Southern Connected Basin. [...] 5.5.2 The ACCC examined the trading activities of the large investors in the Southern Connected Basin the 2018–19 water year Methodology In conducting this review the ACCC analysed the water allocations held by the large investors on their licences or accounts for the purpose of trading water products.300 Trading activity recorded on a Basin State register was combined with the investors’ internal.