New non-standard trading clause

2024 07 08
New non-standard trading clause

Following a request from exchange participants for more flexible payment terms for delivered biomass, amendments to the Conditions of Trade in Biomass Products were adopted on 5 July 2024 and will enter into force on 8 July 2024.

New non-standard clause – “Transaction with early partial payment”

In a transaction concluded under this non-standard clause, the buyer:

  • Undertakes to pay for 70% of the biomass delivered to him during the delivery week within 1 working day after the end of the delivery week.
  • The provisional quantity of delivered biomass in megawatt-hours shall be determined by converting the usable mass of the delivered biomass, expressed in tonnes, into megawatt-hours using a conversion factor of 2,6 MWh/t.
  • The Buyer undertakes to pay the balance of the price payable for the delivered biomass within 1 working day after the date of the Operator’s invoice.
  • If, after determining the quality indicators of the delivered biomass, it turns out that the price discounts for biomass set out in the Regulation of the Energy Resource Exchange are to be applied, or if a lower quantity of biomass has actually been delivered, the Seller shall be obliged to refund to the Buyer the amount paid by the Buyer in excess of the amount payable as stated in the invoice issued by the Operator on behalf of the Seller.

International Biomass Exchange