TRADE IN BIOMASS RESERVE PRODUCTS STARTS ON THE 5TH OF OCTOBER
The Operator of the Energy Exchange includes a biomass reserve product for trading in the Exchange. Under Article 29 of the Law on Energy, this product can be considered the reserves of energy sources.
The principles of trade in biomass reserve products have been set out in the Rules on Trade in Biomass Reserve Products approved by the Operator. The rules set out:
- participants will be able to conclude contracts in the Exchange, accumulate reserve stocks of wood chips and wood pellets that meet the technical specifications provided in the Conditions of Trade in Biomass Products for the products of these types of biomass;
- the delivery of biomass reserve products will take place during the cold season or shorter periods, if contracts are concluded during the cold season. The end of the reserve products delivery period must in all cases coincide with the end of the cold season;
- suppliers will have to accumulate reserve stocks before the beginning of the cold season, or when a contract is concluded less than 2 (two) weeks before the cold season or during the cold season, the start of the delivery period in all cases is the second Monday after the date of concluding a contract;
- suppliers will have to actually warehouse and store reserve stocks at a delivery distance of no more than 100 km from the buyer’s site;
- the supplier of the biomass reserve product will be committed to start supplying the biomass products to the buyer not later than within 24 hours from the moment of receipt of the buyer’s request;
- payment for biomass reserve products is executed in instalments: the buyer shall pay to the seller the part of the price, which is intended to cover the minimum costs incurred by the seller for warehousing and storage of biomass reserve products prior to delivery of these products to the buyer, before the actual date of delivery of the biomass reserve products, and the remaining part of the contract price shall be paid when the seller delivers the biomass reserve products to the buyer.
New documents for trade in biomass reserve products are available here: