Water Market Rules and Water Charge Rules commence

The Water Market Rules 2009 and Water Charge (Termination Fees) Rules 2009 have come into effect after being registered by the Minister for Climate Change and Water in accordance with the Water Act 2007.

To help irrigators and infrastructure operators understand the new arrangements, the Australian Competition and Consumer Commission has issued guides, available online and by post.

In making the rules the Minister has extended the transitional period to 31 August for water charge (termination fees) rules and 31 December for the water market rules. The water market rules require operators to undertake a number of actions during the transitional period.

In NSW and SA, irrigation infrastructure operators typically hold water on behalf of irrigators and may prevent them from selling their water rights. However, the water market rules allow irrigators to 'transform' their rights to water into a statutory water access entitlement directly held by the irrigator, and as a result the irrigation infrastructure operator can no longer prevent them from selling their water.

The ACCC has released two guides for irrigators:

• Permanently selling your water and terminating your delivery right — a guide for irrigators about the water market rules and rules on termination fees;
• Transforming your irrigation right and maintaining water delivery — a guide for irrigators about the water market rules.

These guides explain how irrigators can transform their irrigation rights. In some cases irrigators will sell their water and terminate water delivery services. Permanently selling your water and terminating your delivery right explains the termination fees that an irrigation infrastructure operator may levy.

In other cases, irrigators may wish to transform but retain water delivery rights. For example, irrigators may transform and permanently sell their water access entitlement and then buy water on a year-to-year basis when water prices are low. 'Transforming your irrigation right and maintaining water delivery' explains the irrigators' rights in negotiating terms and conditions of access to water delivery services.

The ACCC has also released comprehensive guides to the rules.

• A guide to the Water Market Rules 2009 and water delivery contracts;
• Water Charge (Termination Fees) Rules 2009 — technical guide for irrigation infrastructure operators.

These comprehensive guides provide technical guidance to assist operators comply with the market and termination fees rules.

The guides are available from the ACCC's website.