Draft amendments to the Typical Conditions of Supply of Biomass and Conditions of Trade in Biomass Products

Taking into account the comments expressed by biomass fuel market participants regarding the improvement of legal regulation and having assessed the data of the electronic trading system, the operator of the Energy Exchange BALTPOOL UAB (hereinafter – the Operator) has prepared draft amendments to the Typical Conditions of Supply of Biomass (hereinafter – the Supply Conditions) and the Conditions of Trade in Biomass Products (hereinafter – the Trading Conditions).

Main amendments to the Supply Conditions

1. A new procedure is proposed in the event of a failure of the automated biomass fuel sampling system and in the absence of manual sampling (clause 6.10 of the Supply Conditions)

The Operator proposes, based on the data collected during 2024 and the comments received from market participants, to set the qualitative indicators of the automated system as follows in the absence of sampling of biomass fuel:

• • If at least 80 % of the biomass fuel samples have been taken and/or formed in accordance with the Fuel Quantity and Quality Indicators Report, the best values for the relevant indicators for the seller from among the values set out in that particular Fuel Quantity and Quality Indicators Report shall be applied.

• • If less than 80 per cent of the biofuel has been sampled and/or shaped according to the Fuel Quantity and Quality Indicators Report, the best values for the indicators relevant to the seller shall be applied from among the values set out in that particular Fuel Quantity and Quality Indicators Report and the values set out in point 6.11 of the Supply Conditions.

2. Delivery of a backup sample to an accredited laboratory (clause 6.15 of the Supply Conditions)

In the event of disputes between the Exchange Participants regarding the delivery of the back-up sample to an accredited laboratory, the Operator proposes to detail the possible methods of delivery of the back-up sample via the postal service provider:

• If the spare samples are stored with the buyer, the buyer must, at the request of the seller:
  • provide the back-up samples to the seller and the seller must deliver the back-up samples to an accredited laboratory of his choice for testing within 24 hours
  • provide the back-up samples to a postal service provider contracted by the seller which provides traceability (tracking number) and which delivers the samples to an accredited laboratory specified by the seller for testing;
  • The Buyer shall also have the right to refuse to submit the samples to the Seller or to a courier service hired by the Seller and to have them delivered, at the Buyer’s own expense, to an accredited laboratory specified by the Seller for testing.

3. An additional obligation for the Buyer to indicate the laboratory where the qualitative tests have been carried out when submitting the completed Fuel Quantity and Quality Indicators Report to the ETS (Clause 9.1 of the Conditions of Supply)

Main amendments to the Trading Conditions

1. Changes to the rules for multiple executions of indivisible order quantities

The 70 MWh multiple applies when the quantity purchased is less than or equal to 840 MWh per week and is not a 350 MWh multiple. 70 MWh multiple orders shall only be executed in their entirety and only with the same orders, i.e. partial execution of such orders or execution with 350 and 700 MWh orders (350 MWh multiples) will not be possible (Clause 5.1 of the Trading Conditions)

2. During the change of orders phase (10:30 – 11:00), when cancelling a purchase order, it will be compulsory to state the reason (Clause 9.3 of the Trading Conditions)

One form of market manipulation is the cancellation of a trade order before it has been executed, thereby creating a misleading impression of the supply or demand for energy resources[1]. Accordingly, it is envisaged that in order to cancel a buy order at the stage of a change in sell orders, it will be mandatory to state the reason why the buy order is cancelled.

[1] Sample list of forms of market manipulation

Please submit your comments and observations, if any, no later than 03/01/2025 to [email protected].

ATTACHED:

1. Draft  of the Typical Conditions of Supply of Biomass in Lithuanian (with visible changes), in WORD format;
2. Draft of the Conditions of Trade in Biomass Products in Lithuanian (with visible changes), WORD format.