Murray Irrigation

WaterWell

WaterWell aims to increase the volume of water used with Murray Irrigations footprint and increase customer certainty when business planning through better resource management.

General information

Murray Irrigation develops the annual Resource Management Strategy (RMS) at the beginning of each season.


This strategy outlines how the season’s water will be distributed, in-line with the company’s Resource Management Policy, and determines if and when each WaterWell product will be available to customers.

Resource Management Policy Principles 

  • Meet Operational Requirements
  • The Company must manage the licence to meet operational requirements in the current irrigation season and the opening of the following irrigation season.


  • Maximise the value of the company’s bulk licence
  • Manage the balance of water available on the company’s bulk licence to return the best yield for the Murray Irrigation footprint.


  • Break Even Profitability
  • Increase water available for all customers within the company’s footprint and meet the budgetary requirements of the company through the commercialisation of a volume of water.


  • Provide early allocation to water using customers
  • Provide an early allocation announcement to eligible customers



  • Provide a benefit to company asset investing customers
  • Distribute a volume of water to eligible Delivery Entitlement (DE) holders

Who is eligible for WaterWell products?

Murray Irrigation customers who are currently in financial terms with the company.

When will the products be available?

When the trigger points of each WaterWell product are reached throughout the year.


Murray Irrigation will communicate this information including the dates it will become available.


When applicable, some products may be announced early.

Can water received from WaterWell products be carried over to next season?

Yes.



If a customer has water remaining in their water allocation account at the end of the Financial Year, the usual carryover rules apply.

Allocation Advance

What is the Allocation Advance?

The Allocation Advance is an early allocation distributed to customers. 

It is distributed according to customers delivery entitlements and must be included within the maximum annual allocation limit under the Water Sharing Plan (WSP) to allow the product to be available early in the season.

Who is eligible for the Allocation Advance?

Murray Irrigation customers who are currently financial.

How much water can I get through Allocation Advance?

Water is allocated as a percentage of the customer’s total delivery entitlements. This is up to a limit of 110 percent of water entitlements (Class C) held within the same account. The Allocation Advance forms part of your total allocation limit.



If insufficient water entitlements are held, the account will not be eligible for the full Allocation Advance volume due to Water Sharing Plan limits.

Calculator

Allocation Advance Calculator

Calculate the volume of water available as an Allocation Advance based on the inputs you provide.


Go to Calculator

Table 1 below illustrates four examples, based on an Allocation Advance of 5%.

How can I access the Allocation Advance if I do not hold enough Water Entitlements? 

Customers seeking to increase their Allocation Advance (up to the limit of 5% of delivery entitlements) may ‘borrow’ Maximum Annual Allocation (associated with Class C General Security water entitlements) from another customer.


This arrangement requires Murray Irrigation’s consent. Customers seeking consent for this arrangement can do so by submitting a Form 6M, located below.


The deadline to submit a Form 6M to the company is 30 business days after the Allocation Advance is announced.

Form

Form 6M

Water entitlement maximum annual allocation borrowing arrangement application.


Download PDF

How do I access the Allocation Advance when it is announced?

The water will be automatically applied to eligible customers’ water accounts as soon as the trigger point is reached. Customers can access the allocated water as they normally would.

Do I have to pay the Allocation Advance back?

No.


The Allocation Advance is exactly that; an advance on water allocations.

How often will Murray Irrigation release an Allocation Advance?

The Allocation Advance volume will only occur once annually, when 1% General Security allocation is announced.

Table 1 - Allocation Advance example of 5%

Customers WE's DE's Maximum annual allocation Carryover Allocation Advance volume
Customer A 600 600 660 0 30
Customer B 600 600 660 300 30
Customer C 20 500 22 0 22
Customer D 20 500 22 10 12

Sustainability Product

What is the Sustainability Product?

The Sustainability product is a volume of water offered to eligible Murray Irrigation customers for purchase. It is an initiative intended to simultaneously put downward pressure on fees and prices, increase water availability in the region, and strengthen the company’s financial position.

Who is eligible for the Sustainability Product?

Murray Irrigation customers who are currently financial.

How do I access the Sustainability Product?

Eligible customers can access the sustainability product through an Expression of Interest (EOI) once it has been announced; and then ‘opt-in’ through the Customer Portal. This typically happens early in the water season. 

How much water can I get through the Sustainability Product?

During the EOI phase, customers nominate the volume they would like.

What if customers apply for more or less than the available volume?

If the offer is oversubscribed, participants will be offered a pro-rata volume based on their delivery entitlements. When a volume of water is offered, it is non-negotiable. Participating customers can either accept or reject the offer.


If customers apply for less than the available volume, surplus available water will remain in Murray Irrigation’s water portfolio for future opportunities.

How is the water applied to my account?

The accepted volume will be applied to the customer’s water allocation account as an uncleared trade. Water can beused on farm as an uncleared trade. If the customer wishes to trade or transfer this water, it must be paid and cleared.

Can water purchased from the product be traded?

Murray Irrigation encourages customers to use the water on farm, but no special restrictions exist to prevent trade or transfer once it is paid and cleared. The usual rules for trade of water allocation apply.

Are there fees associated with accessing water purchased through the Sustainability Product?

The product is offered at a set price per megalitre. Usual fees for trade and usage apply.

What are the payment options?

Murray Irrigation offers eligible customers three payment term options. 

  • Standard 60 day terms as per the fees and prices policy
  • Financed option – 5 months finance due for repayment by 31 December
  • Customers can accept a financed option with a payment date due 5 months after the acceptance of the water transactions. Interest is charged at 10.60% from day one post acceptance on the water transaction.
  • Financed option – 10 months finance due for repayment by 31 May
  • Customers can accept a financed option with a payment date due 10 months after the acceptance of the water transactions. Interest is charged at 10.60% from day one post acceptance on the water transaction.

Can water purchased on finance be traded?

Murray Irrigation encourages customers to use the water on farm, but no special restrictions exist to prevent trade or transfer once it is paid and cleared at the end of your finance term. The usual rules for trade of water allocation apply.

Why is Murray Irrigation offering financing options.

To allow customers flexibility in managing their cash flow and the ability to pay for water after receiving payment for their winter or summer crop harvest. 

 

The financing options also provide a strong return to Murray Irrigation’s investment fund.

How do I apply for the payment options?

During the acceptance phase of the EOI process, customers will be offered the three payment options. Customers can accept any option for payment subject to the terms and conditions.

2024 Sustainability Product - frequently asked questions

  • How much water is available?

    77 gigalitres (GL)

  • What is the price of the water?

    The price will be $92 per ML which is the weighted average market trading price from 30 July to 5 August 2024.

  • How can I access the water?

    The offer is exclusive to Murray Irrigation’s customers who are currently within financial terms with the company. Eligible customers will be invited to submit an expression of interest (EOI) via the Customer Portal. If the offer is oversubscribed, participating customers will be offered a pro rata volume based on their delivery entitlements.

  • How will the process work?

    EOIs can be submitted through Murray Irrigation’s customer portal.


    The process and key dates are as follows:


    1. 6 - 12 August 2024 - Submit an EOI
    2. Murray Irrigation will acknowledge receipt of the EOI within one business day.
    3. 13 August 2024 - Eligible participants will receive an offer for a volume of water. They can either accept or reject the offer online (using their customer portal). Water will be made available within 2 days of accepting the offer.
    4. 18 August 2024 - Deadline to accept an offer.
    5. 19 August 2024 - Latest date water will be made available.
    6. 26 August 2024 - Invoices issued
    7. 26 October 2024 - Payment due – 60-day terms.
    8. 31 December 2024 - Payment due – 5 months financed terms
    9. 31 May 2025 - Payment due – 10 month financed terms
  • Can I change my nominated volume after submitting an EOI?

    Yes, a participant can change or withdraw their EOI at any time before the EOI closure date. However, when a volume of water is offered to a participant, that volume is non-negotiable. Participants can either accept or reject the offer made to them. 

  • What are the payment terms?

    Customer will be offered three options. 


    • Customer can accept Murray Irrigation standard payment terms, Payment due 5pm  Saturday, 26 October 2024

    Murray Irrigation is offering financing options to allow customer to better manage their cash flow. Two options are available:


    • 5 months financed option, payment due 5pm, 31 December 2024. 10.60% interest is applied to the invoice from the acceptance of the offer until the payment due date.

    • 10 month financed option, payment due 5pm, 31 May 2025. 10.60% interest is applied to the invoice from the acceptance of the offer until the payment due date. 

  • What happens to the interest if I pay my account early?

    Customers who accept either financed option, who decide to pay the invoice early will receive a credit equal to the amount of interest paid in advance until the payment due date. 

  • When will the water be available?

    Two business days after participants accept the company’s offer, they may begin to order this water for delivery. 


    The water allocation the participant agrees to purchase will not be credited to the participant’s water allocation account until after the participant has paid for it. We will, however, create an overdraw facility within participants’ water allocation accounts which will enable participants to order water for delivery in excess of their available water allocation. The overdraw limit will be equal to the volume of water allocation the participant has agreed to purchase. 


    Once payment for the water is made, the water allocation purchased will be credited to the participant’s water allocation account and this will clear any overdraw limit.  


    We may choose not to allow a participant to overdraw their water offer subaccount at any time while they have overdue fees and charges.


  • Can the water be traded after purchase?

    Participants will have the water allocation credited to their water allocation account after they have paid for it and they cannot trade it until that time. Participants are encouraged to use the water on-farm but there are no special restrictions associated with the trade of the water allocation once payment is received. The usual rules for trade of water allocation apply.

  • What if customers apply for more than the available volume?

    If the offer is oversubscribed, participants will be offered a pro rata volume based on their delivery entitlements. If a participant is dissatisfied with the volume offered to them, they can reject the offer. 

  • What if customers apply for less than the available volume?

    Surplus available water will remain in Murray Irrigation’s water portfolio for future opportunities.

  • Can the water be carried over to next season?

    If a participant has water remaining in their water allocation account as at 30 June 2025, the usual carryover rules will apply. It is up to the individual to manage their water allocation within the carryover rules.

  • Is this the only water sale Murray Irrigation is offering for the 2024/25 irrigation season.

    Murray Irrigation will commercialise up to a maximum of 80,000ML to acheive a $7 million revenue target for the 2024/25 irrigation season. If this Sustainability Product offer is fully subscribed there will be no further sales. If this Sustainability Product if not fully subscribed, further water sales will be completed, this may include but is not limited to a further Sustainability Product offer.

More ways to pay

Murray Irrigation has introduced delayed payment options to better align with farm income cycles, allowing Sustainability Product customers to manage their cash flow throughout the season. 

Simply select from the following payment terms options during acceptance:

60 days interest free


  • Standard MIL terms
  • Payment due 60 days from acceptance of water transaction
  • No interest
5 months @ 10.60% interest


  • Payment due 31st December 2024
  • Interest charged at 10.60% from day one post acceptance of water transaction
10 months @ 10.60% interest


  • Payment due 31st May 2025
  • Interest charged at 10.60% from day one post acceptance of water transaction

Download the flyer for more information

Resource Distribution

What is the Resource Distribution?

Resource Distribution is the cumulative water savings realised from the efficient operation of the system. The realised volume is provided back to customers as a percentage of delivery entitlements. This volume is geared at increasing the value of delivery entitlements and promoting productive water use in the footprint. 

Who is eligible for the Resource Distribution?

Murray Irrigation customers who are currently financial.

How can I access the Resource Distribution?

Murray Irrigation will credit water allocated to eligible customers accounts when the benefit is announced.

When will the Resource Distribution be released?

Since it is cumulative and progressive, it is typically announced when these savings are realised later in the season.

Water Users Credit

What is the Water Users Credit?

The Water Users Credit, formerly the Compliant Meter Credit, is a volume of water credited to water accounts based on each megalitre delivered on farm through a compliant outlet.

Who is eligible for the Water Users Credit?

Murray Irrigation customers with compliant outlets. Water deliveries on behalf of the Department of Planning, Industry and Environment, WaterNSW and the Commonwealth Environmental Water Holder are not eligible for the Water Users Credit.

How can I access the Water Users Credit benefit?

The Water Users Credit is automatically applied to your water allocation account daily, based on imported meter readings.

Why does Murray Irrigation apply this benefit?

Murray Irrigation applies the Water Users Credit to promote and reward productive on farm water use within the footprint.

System Innovation Product

What is the System Innovation Product?

The System Innovation Product (SIP) is any initiative (internal or external) which saves water during operation of the system. The benefit of the identified water savings will be realised by commercialising the volume of water saved with the revenue used to fund any capital works relating to the initiative. 

More information

For more information on any of our WaterWell products, contact Customer Experience on 1300 138 265

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