Goulburn-Murray Water has started selling high and low-reliability water to help fund credits under the Irrigators' Share Distribution program.
Eligible customers, with individual delivery shares of less than 0.25 megalitres a day, will receive credits to their accounts in July.
The credits will be funded by sales of high and low reliability water shares and allocation.
G-W Customer Experience manager Lisa Dudley said water would be released for sale every Monday, through until April, through a public, online auction on the Waterfind platform.
"To guide the sales process, external water trading experts were engaged by G-MW to develop a Water Trading Strategy," Ms Dudley
"This strategy outlines how and when the water shares will be sold.
"About 1220ML of high reliability water shares (HRWS) and 690ML of low reliability water shares (LRWS) will be sold, as well as the allocations these water shares will receive from July 1, 2021."
Parcels range in size from 7.3ML to 265ML.
"About 1220 ML of High Reliability Water Shares and 690 ML of Low Reliability Water Shares will be sold, as well as the allocations these water shares will receive from 1 July 2021," a G-MW spokesman said.
The G-MW Connections Project involved a $2 billion investment to modernise irrigation infrastructure in the Goulburn-Murray Irrigation District (GMID).
On-ground modernisation works have now been effectively completed.
G-MW will determine the parcel sizes and timing of placement into the market.
From early 2022, additional allocation may become available from the Goulburn and Murray offset accounts.
They have been used to maintain system reliability as water shares were issued to the commonwealth during Stage Two of the Connections Project.
"The available volume will be confirmed with the completion of the final audit of the Connections Project in early 2022," G-MW said.
"Following the audit and consideration of all Government commitments, this allocation may be sold on the open allocation market from early 2022."
Water shares are being sold through a public online auction, through a single broker, Waterfind P/L.
Parcels will range in size from 50ML to 265ML.
The current estimated volumes of water available for sale (to fund benefits for delivery share holders below the 0.25 ML/day thresholds) are:
- About 1220 ML of High Reliability Water Shares (HRWS): About two thirds of this volume will be Zone 1A entitlements. There will also be a small volume of Zone 1B water shares available, whilst the balance will be made of a mixture of Zone 6 and Zone 7 water shares.
- About 690 ML of Low Reliability Water Shares (LRWS): The make-up of this parcel is similar to the HRWS, with about two thirds consisting of Zone 1A LRWS, and the balance made up of Zones 1B, 6 and 7 LRWS.
- Allocation: These water shares will also receive allocations from 1 July 2021 up to the time they are sold. All the available allocation will be sold separately, and the financial benefit provided to delivery share holders below the threshold.
Selling about 1220 ML of HRWS and about 690 ML of LWRS is not considered to be a volume high enough to affect or distort the market.
Want to read more stories like this?
Sign up below to receive our e-newsletter delivered fresh to your email in-box twice a week.