Apropellets creates a code of good practices for free competition in the pellet market

The Spanish Association of Wood Pellet Producers (Apropellets) holds its Annual Assembly in Valladolid, coinciding with the latest edition of Expobiomasa 2019.

Aware that the growth of the wood pellet market, in which it represents over 70% of current pellet production and 80% of certified pellets, could increase the risk of anti-competitive practices, whether by object or effect, intentional or not, Apropellets approved the implementation of a prevention policy among its members during its General Assembly. This policy, outlined in the “Code of Good Practices for the Defense of Free Competition,” aims to guarantee free competition among its members.

The document sets out measures to reduce the risks of non-compliance with Competition Law and actions to quickly detect possible anti-competitive conduct.

With this measure, Apropellets commits to ensuring that no agreement or action has the purpose or potential to have restrictive effects on competition. It will pay particular attention to actions that could have undesirable consequences, both within and outside the association. Examples of actions that this "Code of Good Practices" aims to curb and prevent include setting prices or other commercial terms directly or indirectly, limiting or controlling production, distribution, technical development, or investments, dividing the market for products or raw materials, or placing competitors at a disadvantage by establishing unequal conditions in commercial relationships.

Business and industry associations, such as Apropellets, are fundamental in markets like that of wood pellets. This product currently occupies only a small portion of its potential market, and inefficiencies persist throughout its lifecycle in terms of quality, availability, and distribution. Apropellets brings together various producers, competitors among themselves, through this code of best practices, to foster the progress of the pellet market and ensure that consumers can purchase an environmentally sustainable and renewable product with guaranteed quality and supply.

This collaboration, both within and outside the association, must be governed by rules and laws that guarantee free competition among members and other competitors. It has been demonstrated that, in the absence of a level playing field, the actors involved neglect other aspects such as quality improvement and create market distortions that ultimately harm consumers, competitors, and the market as a whole. Anti-competitive practices, therefore, cause serious harm to Apropellets and its members and result in severe penalties for those involved, which could even jeopardize its existence.

Likewise, the study and analysis of the market in all its aspects is key to its improvement and progress. However, it is also necessary to reconcile the management of information that could be considered strategic with preventing potential anti-competitive actions or outcomes. It is therefore important that there be no direct exchange of information between competitors and that this information be managed confidentially by third parties.

All of this, along with the defense of quality guarantees for wood pellets and sustainable management of raw materials, as well as the defense of competition, become key elements for the progress of the wood pellet market.