The purpose of the water charge rules for termination fees 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.
Rules governing termination fees have been developed to ensure there is a balance between the interests of irrigators who are exiting an irrigation district and irrigators that wish to remain. The rules also ensure that termination fees are set on a consistent basis across the Murray-Darling Basin.
The Water Charge (Termination Fees) Rules 2009 were registered by the Minister for Climate Change and Water (the minister) on 22 June 2009 and came into effect on 23 June 2009.
The Water Act 2007 (the Act) provides that the minister may make water charge rules.
On 11 February 2009, the minister issued a public notice proposing to make Water Charge (Termination Fees) Rules.
On 23 December 2008, the ACCC provided its final advice on the Water Charge (Termination Fees) Rules to the minister.
In December 2007, the minister wrote to the ACCC requesting advice on the water charge rules as required under ss.93(1) of the Act by December 2008.
The ACCC's advice was provided in December 2008 and is in compliance with that request and includes recommended water charge rules for termination fees.
This advice has considered stakeholder submissions in response to an issues paper, position paper and more recently, draft advice to the minister through the ACCC's extensive consultation. The ACCC conducted public forums in regional centres on the draft advice for water market rules and Water Charge (Termination Fees) Rules. In total the ACCC received 65 submissions on the Water Charge (Termination Fees) Rules.
This advice also took into account the Basin water charging objectives and principles contained in schedule 2 of the Act and water market and trading objectives and principles contained in schedule 3 of the Act.