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Market Reform was engaged by Coliban Water to develop an economically-oriented optimisation process based on the utility’s Operating Plan (OP) process. The aim of this process is to support the efficient operation of the water supply system, produce more accurate scarcity prices, and ultimately to support economically efficient and operationally feasible water trading. A deterministic (no uncertainty) water scheduling/pricing model, incorporating the most important operational interactions and constraints on the physical water supply system was developed. This model has the potential to be extended to a more sophisticated stochastic model, that could determine decisions and prices which account for future uncertainty. |