Suspending abstraction trading markets
As a drought becomes more severe should the Government suspend abstraction trading markets, and if so when?
Why the contribution is important
In the reformed system trading of access to water would be facilitated in catchments where there is demand for it. As a drought develops abstractors would be able to trade access to water between themselves where abstraction has not been stopped by low flow controls; the aim is that a market would allocate water for abstraction to those who value it most.
If the drought becomes more serious the government could decide to suspend the market (e.g. to protect essential services). For example they could suspend them:
- If the price of water in the market becomes very high and/or there is very limited trading as there are no sellers (i.e. the market freezes).
- As soon as low flow controls are imposed on any abstractors at all.
- If low flow controls reach a certain level of restriction (e.g. 50%).
by abstractionreform on September 05, 2014 at 10:56AM