The recent announcement of this year's water allocations has stirred things up, with some wondering why allocations aren't higher considering the better state of the Murray-Darling basin and Murrumbidgee River.
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The allocations released show that dams in NSW are at 64 per cent of their total capacity, a marked improvement of 29 per cent from this time last year. However, allocations remain low for general security water.
While domestic and local water utilities are at 100 percent of their allocated water, and high security is at 95 per cent, general security allocations are only being given 30 per cent for the 2021/22 financial year. This means that for every megalitre of water allocated from the basin, they'll only be able to use 300,000 litres.
The director of water planning implementation, Allan Raine said that the improved storage levels were a good sign.
"Commencing allocations for the new water year are very encouraging for most inland regions of the State - while the coastal catchments are generally fully allocated for the coming year."
UPDATE: On July 15, general security allocations in the Murrumbidgee increased to 50 per cent. High security remains at 95 per cent.
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Brian Simpson, CEO of the Riverina Wine Grapes Marketing Board isn't as sure.
Mr Simpson said that while grapes were often high security, many of his growers have general security product and might be forced to buy water to make up a deficit.
"Given that the water in the catchment is higher, many would have expected the general allocation to be announced as a little bit higher. A lot of our growers might have to purchase water and that's cause for concern."
He explained that the water economy is difficult to predict, but better now than it was during the peak drought period.
A lot of our growers might have to purchase water and that's cause for concern
- Brian Simpson, CEO of Riverina Wine Makers Marketing Board
"Given the amount of water in the system, I'd expect water prices to stay quite stable and not see the prices we saw at peak drought ... right now, you can buy a megalitre for $150. Compare that to previous years where it went as high as $1200."
While NSW's current water situation is in a better situation, other states are looking less promising. Northern Victoria's water allocations are currently facing extreme lows, with the highest allocations sitting at 33 per cent for high-reliability water shares. Low reliability water shares are at zero across the entire region.
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