Environmental water surplus a boon for one state

Posted 20 December 2016

Environmental water will be sold in northern Victoria after wetter-than-expected conditions this year

The Victorian Environmental Water Holder (VEWH) is making up to 20GL of environmental water allocation available via selected brokers in the six months leading up to May 2017. 

Chairman Denis Flett said selling would help VEWH manage water holdings for maximum environmental benefit.

“We’ve considered current and forecast seasonal conditions, and our ability to meet foreseeable priority watering actions not only in this year, but also beyond,” Flett said.

“We are confident that we can meet all of our planned environmental targets this year and be well prepared for the next.

“In deciding to sell water, we have assessed current market conditions and consider that we will not have any significant adverse impacts on the market. We will continue to assess this risk throughout implementation of any trades.”

VEWH will use proceeds from the sale to fund future environmental water priorities, which could include purchasing water to meet shortfalls in any Victorian systems, and investment in structural or technical works.

Flett said some of VEWH’s northern Victorian allocation will be carried over to support critical and early season watering in 2016-17.

“The climate is proving to be extremely variable in Victoria. We have moved from one of the driest years on record in 2015-16 to one of the wettest in 2016-17,” he said.

“As water managers, we need to be prepared for all extremes.”