Delivery partners will work with irrigators to determine the minimum water savings achievable under a project, and a certified irrigation professional will confirm that these represent a conservative estimate of the water savings that are technically feasible. This protects the irrigator from risk by ensuring that the project will genuinely recover at least the amount of water being offered. Furthermore, irrigators are able to retain any additional water savings. All COFFIE documents will explain this clearly. Water and project pricing Many submissions voiced support for: the department’s review of pricing to avoid problems experienced in previous programs. Submissions noted: that the water price must be contemporary/current and reflect the true market and productive value of the water to be attractive to irrigators the effect of the program itself on market pricing and the influence of large companies who invest in water. Suggestions for setting a price included: using the spot price establishing a market or fixed price to provide security and a variable component to allow for fluctuations including internal trades in pricing updating the water price at quarterly or six monthly intervals, or updating as the price shifts. Water price transparency Some submissions expressed support because: lack of transparency has made previous programs difficult. Some submissions raised concerns that transparency may: influence suppliers to drive up prices disadvantage organisations with a competitive advantage in the current on-farm program Department’s response:
Delivery partners will work with irrigators to determine the minimum water savings achievable under a project, and a certified irrigation professional will confirm that these represent a conservative estimate of the water savings that are technically feasible. This protects the irrigator from risk by ensuring that the project will genuinely recover at least the amount of water being offered. Furthermore, irrigators are able to retain any additional water savings. All COFFIE documents will explain this clearly. Water and project pricing Many submissions voiced support for: the department’s review of pricing to avoid problems experienced in previous programs. Submissions noted: that the water price must be contemporary/current and reflect the true market and productive value of the water to be attractive to irrigators the effect of the program itself on market pricing and the influence of large companies who invest in water. Suggestions for setting a price included: using the spot price establishing a market or fixed price to provide security and a variable component to allow for fluctuations including internal trades in pricing updating the water price at quarterly or six monthly intervals, or updating as the price shifts. Water price transparency Some submissions expressed support because: lack of transparency has made previous programs difficult. Some submissions raised concerns that transparency may: influence suppliers to drive up prices disadvantage organisations with a competitive advantage in the current on-farm program Department’s response:
coffie-thematic-paper.docx