Environmental water fails to sell

At the time, the CEWH said the trade of annual water allocations was a result of the wet conditions during the past three years.

“Nature has been doing the heavy lifting this year in the Goulburn ... (a)s a result, I am in a position to trade up to 8 Gl, or about three per cent of the Commonwealth’s annual water allocations in the Goulburn catchment and make this water available for other water users,” CEWH Dr Simon Banks said

The water was not permanent water entitlements owned by the Commonwealth.

The sale opened on January 30 and closed on February 3.

Before the tender period opened, an independent market valuation was prepared and published on the CEWH website.

However, between early January 2023 and early February 2023, the price per megalitre of water on the annual water allocations market decreased substantially.

“This reduction was likely triggered by widespread rainfall in the Goulburn catchment, and that many irrigators already had water in storage for next year and therefore were likely to need to use the water this water year,” the CEWH said in its allocation sale outcome report.

“Prior to the tender close, additional independent market advice was received and based on this, and other market information, the CEWH revised the minimum sell price to $21/Ml.”

According to the Victorian Water register, temporary water in the Goulburn system dropped from a median price of $35-$36 in January to $15-$17 in February.

Of the 27 bids received during the tender for the water, which equalled a combined volume of 11.6 Gl, no bids were at or above $21/Ml.

“Therefore, no Goulburn annual water allocation was sold in this tender,” the CEWH said in the report.

The 8 Gl of water earmarked for sale will now be used to support environmental outcomes in the Goulburn River and downstream along the Murray River.

A spokesperson said this was the first time the CEWH had not received any bids at or above the minimum bid price limit set for a sale of annual water allocations.

Since 2014, the CEWH has sold annual water allocations on five occasions and committed nearly $5 million to activities that support the recovery of threatened species and improve wetland health.