Placing your bid for CEWH allocation in Goulburn
30 August 2018
All the information on how to place your bid in the Commonwealth tender for 20GL in the Goulburn system is available on their web site.
How do I submit a bid?
Bids will be accepted between 10 am Monday 3 September 2018 and 2 pm Wednesday 5 September 2018 (AEST)
The key points from the FAQ document are;
- Bids can be made for volumes as small as 5ML and up to a maximum of 500ML
- You must have an ABA to which Goulburn allocation can be transferred to place a bid (given transfers out of Goulburn are currently restricted due to the IVT). At the present time this includes ABA’s in 1A, 1B, 3, 4A, 4C and 5A.
- Bids can only be submitted using the online Bid Form
- You must have an ABN to register a bid in the tender. If you don’t have an ABN, you may have someone with an ABN lodge a bid on your behalf. Some brokers are charging for this service but H2OX can assist at no cost!
- Multiple bids can be submitted, each bid can be for a maximum of 500ML (note all successful bids are binding)
- You will receive an email confirming your bid once it has been lodged
- The Commonwealth will inform bidders whether they are successful or not from 7-14 September
- Payment for the water needs to be made by credit card or EFT
- Transfer of allocation is expected to be completed by 24 September
So what price will the Commonwealth accept?
The Commonwealth have “…identified a price limit, informed by current market conditions…” According to the Market Information report, the Volume Weighted Average Price in Goulburn during August was $311/ML.
What happened at the last tender?
The last tender of allocation in the Goulburn occurred in October 2015 when 23GL was sold. According to a media release by Sharmon Stone MP, the water was sold for an average of $282/ML.
Looking back at the temporary water trades in the Victorian Water Register recorded in the 2nd half of October, market prices were trading between $250 and $300/ML.
The largest volume that was successfully tendered was 5,111ML which was transferred for $277/ML on 6 November indicating that tendered prices were very close to the prevailing market price.
If you want to discuss your options please call H2OX on 1800 988 118.