AUSTRALIA'S largest hydro power corporation has pocketed 96,787 megalitres earmarked by three governments to boost the Murray River's environmental flow.
The water is part of the 2002 deal between the Federal, NSW and Victorian governments to deliver 70,000 megalitres of environmental water a year to the Murray River and another 212,000 megalitres to the Snowy River by 2012.
But under the deal, launched in a blaze of publicity in 2002, the Snowy Hydro Corporation retains the power to release allocations against the 70,000 megalitres whenever it chooses, to maximise its revenue.
Snowy Hydro makes most of its $700 million a year by holding water in storage, which it locks into hedging contracts with coal and gas-fired power companies for years, rather than releasing it to generate electricity or environmental benefits.
Snowy Hydro water executive officer David Harris said the 70,000 megalitres due to be recovered under the 2002 deal was put under the corporation's control to offset some of the erosion in its value as a result of water being diverted down the Snowy River.
The Water for Rivers joint-government enterprise, charged with recovering water for the Snowy and Murray rivers, must divert one in every three megalitres it recovers into the River Murray Increased Flows Account controlled by Snowy Hydro.
Since January 2005, a total of 96,787 megalitres has flowed into the RMIF account, but only 38,000 megalitres has been released, following a request of the Victorian Government for the 2005-06 season in return for agreeing to advances of water to NSW irrigators.
Australian Conservation Foundation healthy rivers campaigner Arlene Buchan said the discrepancy between what had been allocated to the Murray and what had been delivered was a major issue of concern.
"The rules that govern the allocation of water to the Snowy are horrendously complex," Dr Buchan said.
"We'll be looking into it."
Former Snowy Hydro engineer Max Talbot said it was absurd that his former employer retained control over such a precious resource to maximise its revenue rather than community good.
"This water should not just be used to make bucks for the electricity generator," Mr Talbot said.
