Client: Goulburn-Murray Water
In the late 1990s, water market growth was being limited by a lack of transparency and limited availability of market information on price and market volumes. Customers of Goulburn-Murray Water (G-MW) asked it to establish water broking options to address these constraints.
G-MW negotiated funding from DSE, and with the support of DSE and the other Victorian water authorities, established the WaterMove water exchange.
DG Consulting’s Garry Smith was working for G-MW at that time and was appointed Project Director. The project involved development of the business model and trading process, using the experience gained through operation of the Northern Victorian Water Exchange. A unique double bid auction system was confirmed as the best model to support the market development objectives for WaterMove, and a software system was designed and specified to manage the trading process and support the online exchange presence.
The project also included development of suitable governance arrangements for WaterMove and preparation of a business plan and financial feasibility study. Following the establishment of Watermove, Garry continued to oversee its management and operations and was instrumental in negotiating access arrangements to trade in Murray Irrigation Limited and NSW State Water regions. WaterMove is one of the largest trading exchanges in northern Victoria, and handles around 25% of the volume of Victorian allocation trade.