Biomass delivery schedule

Conclusion of contracts of purchase and sale of biomass involves agreement on a standard biomass delivery schedule. A standard biomass delivery schedule means that the seller must deliver the weekly quantity of biomass specified in the respective contract in the course of the respective delivery week on business days chosen by the seller.

The buyer may unilaterally adjust the standard biomass delivery schedule having notified the seller of this in writing or using ETS tools at least 3 (three) business days in advance (for contracts of the current calendar week: on the auction day at the latest), in the cases described below and in adherence to the conditions outlined below:

• In all cases: a uniform biomass delivery schedule, that means that the seller shall deliver equal quantities of biomass on each business day of that calendar week.
• For contracts with one-month, one-quarter, half-year and one-year delivery periods during the heating season: if the need for biomass decreases due to weather conditions, the buyer may reduce the quantity of biomass to be delivered in the course of a specific delivery week by up to 20% (compared to the quantity of biomass that must be delivered during the specific week according to the concluded contract).
• For contracts with one-quarter, half-year and one-year delivery periods: the buyer may set the biomass delivery start and/or end date(s) with consideration to the actual start or/and end date(s) of the heating season at the buyer’s thermal energy production location.
• For contracts with one-month, one-quarter, half-year and one-year delivery periods: the delivery schedule may be adjusted unilaterally to ensure that the delivery of biomass is implemented with consideration to the allowed delivery errors.

The parties may, by mutual agreement, agree on a different biomass delivery schedule acceptable to both parties (e.g. they may agree on the delivery of biomass at a specific time of the day or on the decrease or increase of the quantity of biomass to be delivered).

If the parties fail to agree, when one party initiates adjustment of the supply schedule of biomass by mutual consent, the buyer, is entitled to set a uniform supply schedule in writing or via the ETS at least 1 (one) working day before the relevant supply period.

Determination of and agreement on the quality of biomass

The buyer shall, not later than within 7 (seven) business days from the end of the respective delivery week, provide the seller, with the quantity and quality parameters of the biomass actually delivered in the course of the respective delivery week (in the form of a Fuel Quantity and Quality Report).

If the buyer delay the provision of the quality parameters of the biomass delivered in the course of the respective delivery week, it shall be deemed that the delivered biomass complies with the quality parameters set for it.

If the seller agrees with the quantity and quality parameters of the biomass delivered in the course of the respective delivery week that were provided by the buyer, the seller shall confirm that via the ETS means not later than on the 8^th (eighth) business day after the end of the week of delivery. If the seller within the set period fails to confirm the data of Fuel Quality and Quality Report presented by the buyer, but does not dispute them, it shall be deemed that the seller agrees with the values of quantity and quality parameters established by the buyer.

If the seller disagrees with the quantity and quality parameters of biomass provided by the buyer, the seller must reject the Fuel Quality and Quality Report and specify a specific reason for the rejection via the ETS means not later than on the 8^th (eighth) business day after the end of the week of delivery.

The buyer shall immediately, but not later than within 2 (two) business days, assess the reasons for rejection of the report specified by the seller and, if necessary, adjust the Fuel Quality and Quality Report accordingly and resubmit it to the seller for approval, or refuse adjusting the report. The buyer can refuse adjusting the Fuel Quantity and Quality Report only by giving specific reasons and arguments in writing, why he disagrees with the reasons given by the seller for rejection of the report.

If the seller rejecting the Fuel Quality and Quality Report sets out that he will carry out verification of specific quality parameters in a laboratory, the seller shall carry out a repeated test of a reserve sample of biomass in an accredited laboratory and present the results of this test to the buyer not later than within 5 (five) business days from the moment of rejection of such report.

If the seller misses the deadline for rejection of the Fuel Quality and Quality Report, the seller loses the right to dispute the values of quality parameters determined by the buyer, and the seller’s claims of such nature are not considered.

Payment for supplied biomass

Payments shall be made directly between the respective participants according to the invoices issued by the Operator on behalf of the seller. Payments shall take place by method of bank transfer.

An invoice shall be issued within 3 (three) business days from the day on which the buyer approved the Fuel Quantity and Quality Report in the ETS. The invoice and the Fuel Quantity and Quality Report shall be sent to the buyer and to the seller to the e-mail addresses specified by them.

The buyer must pay the invoice within 30 (thirty) calendar days from its receipt.