The operator of the energy exchange introduces transactions for partial prepayment for biomass and accumulation of biomass (hereinafter partial prepayment transactions) from 25 September 2018. A key condition of the partial prepayment transaction is a partial prepayment and, accordingly, advance accumulation of biomass.
Trade under these transactions will be carried out in the “Non-standard trade” section.
The main conditions of transactions for partial prepayment for biomass and accumulation of biomass are as follows:
- Partial prepayment transactions may be concluded for biomass that is ready for use and complies with the technical specifications of the biomass products traded in the exchange. Any one type of the biomass products traded in the exchange may be purchased;
- Partial prepayment transactions may be concluded by sellers entitled to sell biomass under one-quarter and half-year transactions concluded in the exchange;
- Partial prepayment transactions may be concluded for all delivery periods with the exclusion of one-week periods;
- The total value of transactions for partial payment for biomass and accumulation of biomass concluded by a single seller may not exceed the amount of the seller’s equity capital;
- The buyer shall pay 50% of the value of a transaction (the value shall be calculated with consideration of the value added tax) to the seller based on the prepayment invoice within 10 business days from the moment the transaction is concluded, but in any case not later than by the start of the delivery period if the delivery period starts earlier than 10 business days after the day the transaction is concluded;
- The seller hereby agrees, by the start of the delivery period applicable to the respective transaction, to accumulate the entire amount of the biomass product/raw material of the product sold under the transaction at the warehouse(s), the maximum distance of which from the place of delivery of biomass may not exceed 100 km;
- The buyer may, at any time and by giving the seller 1-business day notice, inspect the amount/quality of biomass accumulated under a transaction. Should the seller fail to accumulate the required amount of biomass, the penalties at the rates set in the Regulation shall apply based on the assumption that the non-accumulated amount of biomass is the undelivered amount of biomass;
- Payment shall be made for the actually delivered biomass, with consideration of the prepayment made by the buyer, according to the following procedure: the respective share of the prepayment made by the buyer shall be used to cover 50% of the amount of the VAT invoice issued for the delivered biomass (including VAT); the buyer shall pay the remaining share of the invoice according to the procedure and deadlines prescribed by the Regulation.
The specification of transactions for partial prepayment for biomass and accumulation of biomass can be consulted here: