The reference price has been approved

2017 11 06

By Order No. IS-170045 “Regarding approval of the biomass product reference price” of Chief Executive Officer of 6 November 2017, the Operator set the following Reference price for transactions of purchase and sale of biomass reserve products concluded at the Exchange and implemented during the 2017–2018 cold season of the year for the respective biomass products traded at the exchange:

Product code SM1 SM1W SM2 SM3 MG1 MG2
Reference price,
EUR/toe (excl. VAT)
166.06 164.36 161.68 157.31 372.90 340.09

No contracts for purchasing of MG3 biomass product have been concluded by 6 November 2017, therefore the reference price has not been established.

Payments under contracts of purchase and sale of biomass reserve products are executed in instalments. The reference price is used to determine the part of the Contract Price intended to cover the minimal expenses incurred by the seller for warehousing and storing the biomass reserve products before the delivery of these products to the buyer, which shall be paid by the buyer to the seller every month before the actual date of delivery of biomass reserve products, and to determine the remaining part of the Contract Price, which shall be paid after the delivery of biomass reserve products by the seller to the buyer.

More information on payment provisions see in the Rules of Trade in Biomass Reserve Products.