Looking to the future: Continuous Sharing

1. Looking to the future:Continuous Sharing

2. Continuous sharing … • Is a method of water accounting • Used in Victoria for large electricity customers in Gippsland • Used in areas of Queensland since 1999 • Growers interest is growing in other parts too • Growers have increased production without increasing water use through better water management due to continuous sharing Continuous sharing provides more individual choice and requires more decision making. However – customers can choose to take standard allocations if they want.

3. Example of continuous sharing… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

4. Your storage share… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

5. Your storage share… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

6. Your storage share… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

7. Your storage share… When your storage share is full it spills into un-filled storage shares Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

8. Your storage share… Inflows less storage losses and environmental flows Reservoir You share in storage inflows based on your entitlement You share in storage losses based on the volume you have stored Outflows plus delivery losses

9. Your storage share… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses Your storage share volume increases with inflows and decreases with losses

10. Your storage share… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

11. Your storage share… Inflows less storage losses and environmental flows Reservoir Outflows plus delivery losses

12. Your limit on seasonal use… Total Annual Use Limit

13. Your seasonal cap… Total Annual Entitlement

14. Your seasonal cap… Total Annual Cap You can trade seasonal cap

15. Continuous sharing example… Water share account Cap account A B A Storage 200ML -10ML loss =190ML -65ML Rel -10 ML loss =115ML -65ML Rel -5ML loss =45ML +50ML trade =95ML +25ML inflow =115ML B Storage 200ML -10ML loss =190ML -0ML Rel -15ML loss =175 ML -0ML Rel -15 ML loss =160 ML -50ML traded =110 ML +25 ML Inflow =140ML Cap 100ML 0 ML use =100 ML -50 ML use =50 ML -50 ML use =0 ML + 25 ML trade =25 ML Cap 100ML 0 ML use =100ML 0 ML use =100 ML 0 Ml use =100 ML -25 ML traded =75 ML B A 115 ML 140 ML 100 ML 100 ML Next season

16. What are the benefits of continuous sharing? • You manage your water share at the storage • No annual allocation made for the district • There is no reset at the end of the season for water shares • The maximum you can store is limited by the size of your water share • The maximum you can use in a season is capped • The maximum you can use is reset at the end of a season • You can separately trade: water, water share and seasonal caps • The legal water entitlement you currently hold remains the same • The maximum volume in your storage depends on entitlement • You share inflows based on your entitlement • You share storage losses based on the volume you store • Your use includes delivery losses • The water you have depends on inflows, losses, use and trades • More flexibility can provide greater certainty and planning horizon It is like having your own storage

17. What next … • Are you interested? • Customer support – If strong, proceed with initial study • Legislative changes are required – it will take time • Develop model to suit local conditions • Develop information package for customers • Run information sessions and inform customers on continuous allocation use