The transitional period for the Water Market Rules 2009 ended on 31 December 2009 and the rules are now in full effect and enforceable by the Australian Competition and Consumer Commission.
These rules, together with the Water Charge (Termination Fees) Rules 2009, will make it easier for farmers in the Murray-Darling Basin to sell their water rights and exit the sector or restructure their business.
Transitional periods were provided for in the rules to give irrigation infrastructure operators time to meet the requirements of the rules. In June 2009 the ACCC issued guidelines to assist operators to implement and comply with the new arrangements. Additionally ACCC staff were in regular contact with operators and irrigators, responding to inquiries and providing presentations in some of the Basin's irrigation areas.
The ACCC is encouraged that a number of operators have made changes to their arrangements in order to comply with the new rules. This includes amending their processes to enable irrigators to transform and trade their irrigation rights and to terminate their delivery arrangements if they wish.
"The ACCC will continue to respond to enquires and assist operators to promote compliance with the rules and encourages all operators to ensure that their arrangements are compliant," ACCC chairman Graeme Samuel said.
"As in all enforcement activities, the ACCC will investigate complaints and monitor for compliance with the rules. It will not hesitate to take appropriate enforcement action against operators who do not comply."
The ACCC's Water market rules and water charge rules — Enforcement Guide sets out the factors the ACCC will take into consideration in pursuing enforcement matters. The guide is available via the For regulated industries and water section of the ACCC website. Compliance information to assist operators implement the water rules is also available on the ACCC's website.
The Water Market Rules 2009 and the Water Charge (Termination Fees) Rules 2009 were registered by the Minister for Climate Change and Water on 22 June 2009 and came into effect on 23 June 2009. The transitional period for the WMR ended on 31 December 2009 and for the WCTFR the transitional period ended on 31 August 2009. The purpose of the WMR is to free up the trade of water access rights within the Murray-Darling Basin. The rules allow this by enabling irrigators to 'transform' their share of the water entitlements held on their behalf by operators into separately held entitlements. The purpose of the WCTFR is to promote the efficient use of and investment in irrigation infrastructure and on-farm infrastructure and to facilitate the efficient functioning of water markets.
