VEWH water sale in northern Victoria - March 2015

The Victorian Environmental Water Holder (VEWH) intends to sell an additional volume of environmental water in the northern Victorian water market.

The Victorian Environmental Water Holder (VEWH) intends to sell an additional volume of environmental water in the northern Victorian water market.

Up to 5,000 ML of allocation will be made available in northern Victoria via selected brokers and web-based exchanges during autumn 2015. 

Denis Flett, VEWH Chair said the decision to sell some additional allocation this year was made in light of an updated assessment of the VEWH's demand and supply position. 

"The dry conditions we've seen across northern Victoria during spring and summer have led to lower deliveries than we initially planned in some regions.  Dry conditions can often lead to lower environmental demand, as it may not be feasible or efficient to deliver water when it's so dry, or because naturally water would not have been present at that site under these conditions."

"We've again considered current and forecast environmental demands, the water availability outlook for 2015-16 and our capacity to carry over water, and have determined that the sale of an additional 5,000 ML is a part of our best portfolio management option." Mr Flett said.

"We have assessed current market conditions and adopted an implementation plan aimed at being a good corporate citizen, including by avoiding any significant adverse impacts on the market."

"The VEWH operates under the same water market rules as any other entitlement holder and operates within the limits specified within its entitlements," Mr Flett said.

Proceeds from the sale will be used to invest in future environmental watering priorities. This may include water purchase to meet shortfalls in any Victorian system, or investment in measures to improve the performance of Victoria's environmental watering program.A significant proportion of the VEWH's northern Victorian allocation will be carried over to support critical and early season watering actions. VEWH carryover and trading activity during 2014-15 will be reported in the VEWH's Annual Report 2014-15.