Delivery Entitlement Fact Sheet


THE BASICS

  • A Delivery Entitlement (DE) is an entitlement to have water delivered to land in Coleambally Irrigation Co-operative Limited (CICL) areas of operation.  Membership of CICL is dependent on holding DE. DE does not incur the fixed charge equivalent.
  • CICL’s and the Coleambally Irrigation Mutual Co-operative Limited’s (CIMCL) charges are levied per DE.
  • CICL issues its additional water offers in proportion to DEs owned.
  • CICL has Tier One and Tier Two DEs.
  • Tier One has access to a share of the daily flow if there is a capacity constraint and Tier Two does not.
  • DEs are attached to land in CICL but can be traded permanently between CICL farms and separately to both Water Entitlements (WE) and shares.
  • DEs cannot be temporary traded between CICL farms.
  • The fixed charge equivalent applies when water use is greater than 110 percent of DEs on a farm or in a Single Farming Unit.
  • Government charges apply to WE and to water use.

INTRODUCTION

On 1 July 2007 the Board resolved to issue one DE for each Megalitre of Nominal Water Entitlement held. This change was driven by the making of new Rules under the Water Act 2007 (Cth) which forced CICL to separate its charges for the costs of operating, including infrastructure costs from WE charges. The legislative changes also prevented CICL restricting trade of WE.

When DE was first issued each farm would have held one DE and one share for every WE held. High security DE was issued to high security WE and general security DE was issued to general security WE. The majority of DE are general security.

CICL’s DE policy and rules have evolved in response to the Rules made under the Water Act and the impacts of the removal of restrictions on the trade of WE including the entry of government to purchase WE for the environment.

CICL now considers DE as the core of its business, and its revenue source for operations and future infrastructure refurbishment.

The evolution of CICL’s DE policy and changes to its Rules since 2007 is aimed at adding value to DEs.

There are 485,509 active DEs in CICL (2018).

DE POLICY DETAIL

  1. Membership of CICL is dependent upon the minimum DE held (Rule 10.2).
  2. CICL’s Fixed Access Fee, Compliance Fee and CIMCL’s contribution are levied per DE.
  3. Any additional water (Rule 82C.2) is to be allocated in whole ML to all members proportionate to the number of their DE.
  4. CICL has Tier One and Tier Two DE.
  5. CICL has high security and general security DE.
  6. Tier One DE comes with capacity share at all times and Tier Two DE has no access to capacity share when channel flow is constrained.
  7. All high security DE is Tier One.
  8. Conversion of Tier Two DE to Tier One DE is possible if, as a result of trade of Tier One DE from a channel, there is additional capacity on that channel.
  9. High security DE can only be permanently traded to a landholding in a designated high security area.
  10. DE can be traded permanently but only within the CICL area of operations.
  11. DE can only be traded to a landholding that is connected to the CICL channel system.
  12. If the permanent transfer of DE would result in the capacity of the destination channel, at any point downstream, being reduced to less than 14 ML per day per 1,400 Tier One DE it will be designated as Tier Two DE and will not receive any capacity share in the event of capacity constraints.
  13. Every permanent trade of WE, DE and/or shares must be approved by the Board (CICL Rule 105.1).
  14. Any permanent transfer of DE will create a new DE, share and WE certificates.
  15. Temporary trade of DE is not permitted.
  16. DE can be traded with or without a WE.
  17. DE can be traded with or without shares.
  18. High security DE can be converted to general security DE (and general security DE to high security DE) by application to CICL. Any such application is to be the subject of a deliverability assessment and the conversion would be at a rate which reflects the difference in CICL’s charges between the high security and general security DE.
  19. Where DEs are terminated payment of a termination fee consistent with the Water Charge (termination fee) Rules 2009 (Cth) is required (Rule 19).
  20. CICL may require security for its charges in accordance with Rule 116 where a member holds either DE but not WE or at least five times more DE than WE.
  21. In addition to charges applied per DE (2 above) water use up to 110 percent of DE on a farm or within a single farming unit is charged the WaterNSW usage charges. Water use above 110 percent of DE on a farm or within a single farming unit attracts the fixed charge equivalent as well as the WaterNSW usage charge.

 

FURTHER INFORMATION

If you require further information please contact CICL’s Company Secretary on 02 6954 4003.