On Tuesday 28 October 2014, the Murray-Darling Basin Authority (MDBA) announced that it was reinstating the trading rule that restricts allocation trade from upstream of the Barmah Choke to downstream.
This is the first time since September 2007 that the trading rule has been reinstated. You can read the MDBA’s media release at http://www.mdba.gov.au.
Trading through the Choke
This means that allocation trade from upstream to downstream of the Choke is now limited. It can occur only if allocation is traded from below to above the Choke after 28 October 2014. This limit applies to trade applications received after 5pm on 28 October 2014.
Online applications for trade out of zone 6 (above Barmah Choke) will be referred to Goulburn Murray Water for manual processing, and will therefore not receive an instant response.
If you plan to trade water through the Choke, you or your broker needs to keep an eye on any trading limits that apply to you.
Why has this trading rule been reinstated?
The Barmah Choke is a narrow section of the Murray River between Tocumwal and Barmah that has a limited capacity and constrains the volume of water that can be passed to downstream users.
When this capacity is reached, delivery of water allocation that has been traded from upstream to downstream cannot be guaranteed. Under the Murray-Darling Basin Agreement, MDBA can reinstate the trading limit if it feels that there are potential delivery problems.