The Australian Competition and Consumer Commission today released an issues paper seeking submissions on the development of water market rules.
The water market rules form a key component of the Water Act 2007, which creates new institutional and governance arrangements to address the sustainability and management of water resources in the Murray-Darling Basin.
The rules will ensure that policies or administrative requirements of operators of irrigation infrastructure who hold a group water access entitlement on behalf of their member irrigators do not unreasonably prevent or delay trade.
"The purpose of the water market rules is to free up the trade of water within the Murray-Darling Basin," ACCC Chairman, Mr Graeme Samuel, said today. "A well functioning water market will contribute to improved water use efficiency as well as send clearer signals about efficient investment in water infrastructure assets. Reducing restrictions on the trade of water provides irrigators with greater flexibility in managing their water rights."
Submissions are to be provided to the ACCC by Friday 9 May 2008. Details on how to make a submission can be found in the issues paper, which will be available from the ACCC website.
The Water Act 2007, which came into effect on 3 March 2008, creates new functions for the Australian Competition and Consumer Commission. These include the development of water charge rules and water market rules for consideration by the Minister; and for the ACCC to monitor compliance with and enforce these rules.
The Minister for Climate Change and Water, Senator Penny Wong, has requested the ACCC to develop advice on water market rules by August 2008 and water charge rules by January 2009.
The ACCC will release in due course a suite of issues papers covering bulk water charges, charges of irrigation infrastructure operators and charges levied to recover the costs of water planning and management activities.
The Water Act also requires the ACCC to advise the new Murray-Darling Basin Authority on water trading rules, which the Authority will develop as part of the Basin Plan for adoption by the Minister. The Basin Plan is scheduled to be completed by early 2011.
