The Australian Competition and Consumer Commission (ACCC) has released the highly anticipated final report from its Murray-Darling Basin water markets inquiry.
To support the inquiry, the ACCC commissioned three pieces of research, each investigating a different aspect of water markets.
Frontier Economics was asked to assess water market architecture. Our report, Water market architecture: Issues & options - Input into ACCC market architecture assessment, considered whether the existing architecture and design of the southern connected Murray-Darling Basin (scMDB) water markets are constraining or distorting water trading activity and competition.
The scope of this research included system operation, trading and other rules and regulatory settings that influence the opportunity for trade, the level and location of trade, and manage the impacts of trade on other water users and the environment. The scope also extended to consider governance, including institutional make up, roles, functions and decision making processes. After conducting the review of current arrangements, the report proposed potential solutions to improve the operations, transparency, competitiveness or efficiency of scMDB water markets.
