Trades between South Australia and the uTrades between South Australia and the upper States

Trades between South Australia and the upper States

(23) A State transfer account is kept between each upper State and South Australia at the South Australian border. It acts to pass to South Australia a volume equivalent to any net trade between that State and South Australia.

(24) The accounts are adjusted for transfers of allocation (temporary trades) between each upper State and South Australia, by the full value of the trade.

(25) In the case of exchange rate trade, the accounts are adjusted for progressive net transfers of entitlement (permanent trades) between each upper State and South Australia, by a volume equal to the corresponding allocations in the various valleys in the upper States; i.e. the volumes transferred are at the reliability of the high reliability entitlement in each upper State valley. Transfers into the accounts take place as allocations are announced.

(26) In the case of tagged trade, the adjustments are calculated as described in clause 7.2, and applied with the timing described in clause 8.3. Any overdraw is carried forward to the following year and offset against allocations in that year.

Note that:

• In principle, under tagged trade the net trade in or out of each entitlement product and the usage of each product must be considered and the result amalgamated into an aggregate net use. This means that the net use of each Victorian product traded to SA must be calculated and subtracted from the net use of each SA product traded to Victoria. A similar calculation is required for NSW/SA trades.
• There is a legacy of exchange rated trade from Victoria and NSW to SA resulting from the Pilot Scheme. There is no way to identify all of the specific individuals who hold this entitlement so actual use cannot be recorded. This will be accounted for in the future as it has been in the past – transfer of the allocations made to the nominal High Reliability volume traded.

(27) If the flow in a month is above entitlement and trade adjustments, the extra water is deemed to have been delivered in that month.

(28) No “callout” by South Australia is involved. Transfers out of the accounts take place each year by delivery of the appropriate volumes over 8 months.

(29) The volume to be delivered will be rationed if necessary in accordance with any rationing of delivery rates imposed in the source valley.

Note: The accounting for achieving debits to the SA account should be treated in the same way as the accounting for delivery of SA entitlement flows.