GLOSSARY OF TERMS
The representative of The Stove Auction conducting the Sale.
Auction Bypass Option
If there is demand from Buyers to pay The Stove Auction the Full Wholesale Value of the stove then The Stove Auction would sell stoves directly to Buyers and bypass sending these stoves to auction. The Stove Auction would still charge a Sellers Fee and Buyer's Premium. The Buyers (local distributors / retailers) would still receive cash incentive payment for stoves they sell to end-consumers that can be verified by an independent auditor.
Every auction at The Stove Auction is given a unique number to distinguish it from previous and subsequent auctions. The initial letters of the auction number stands for the auction location: “KH” stands for Cambodia. The Auction Number appears in the online Catalogue of Products, among other places.
The Stove Auction’s services, which may include preparing the Property for Sale, describing the Property, Photography, listing the Property, communicating with prospective Buyers about the Property, closing the Sale, facilitating payments for the Property, and shipping the Property to the Buyer(s) at their expense.
The amount (stove volume and money per stove unit) that a Bidder would buy for the Lot being auctioned, which is submitted via SMS message to the Auctioneer.
A person who has completed the Bidder Registration Form and is registered to place bids at The Stove Auction.
The person to whom a Lot is sold by the Auctioneer.
An agreement between the Buyer and the entity running The Stove Auction (currently C-Quest Capital (Cambodia) Co., Ltd.). The agreement is posted publicly on The Stove Auction website and is automatically executed between the Buyer and The Stove Auction at the time the Buyer wins at the auction. It lays out the bidding, paying, and receiving process and responsibilities and liabilities of each party, including penalties for non-compliance. It also includes the process for Buyers to obtain the cash incentive payments.
A commission paid by the Buyer to The Stove Auction above the Hammer Price as part of the total Purchase Price. See The Stove Auction Buyer's Premium Schedule here.
Carbon Monoxide (CO)
Carbon monoxide (CO) is a colourless, non-irritant, odourless and tasteless toxic gas. It is produced by the incomplete combustion of carbonaceous fuels such as wood, petrol, coal, natural gas and kerosene.
Catalogue of Products
Information about a Lot offered for Sale, such as the name of the stove and manufacturer, and a detailed description of the product. This information is published in the auction Catalogue of Products available online.
Contract for Sale
This is an agreement between the Seller and the Buyer. The agreement is posted publically on The Stove Auction website and is automatically executed between the Seller and Buyer at the time the Buyer wins at auction. The agreement transfers the official ownership from the Seller to the Buyer and liabilities therewith.
The only Description of the Lot (being the following Entry about the Lot in the online Catalogue of Products: Product Description section; photographs and videos; the User Manual, Product Specifications, and Warranty Card in the Documentation section) to which the Seller undertakes in the Contract of Sale the Lot corresponds.
Controlled Cooking Test (CCT)
The Controlled Cooking Test (CCT) is a field test that measures stove performance in comparison to traditional cooking methods when a cook prepares a pre-determined local meal. The CCT is designed to assess stove performance in a controlled setting using local fuels, pots, and practice. It reveals what is possible in households under controlled conditions but not necessarily what is actually achieved by households during daily use. [Source: Global Alliance for Clean Cookstoves website]
Any statement or representation in any way descriptive of the Lot.
A written statement in the online Catalogue of Products identifying the Lot and its Lot number which may contain a Description and photographs and videos relating to the Lot.
A statement of The Stove Auction's opinion of the range within which the hammer is likely to fall.
Expenses that may be owed to The Stove Auction from the Seller or Buyer such as storage charges.
Full Wholesale Value
The Full Wholesale Value includes the ex-factory price of the stove, and all costs related to shipping and import. The Full Wholesale Value is also the same as the Guarantee Price to Sellers for the stove unit. If Buyers wished to pay the Full Wholesale Value for a stove, they can use the Auction Bypass Option. The Full Wholesale Value is published in our online Catalogue of Products to provide Bidders with an important preliminary guide to value the product.
The Stove Auction guarantees the Seller a price per Stove Unit sold at auction regardless of the price paid by Buyers at auction, as long as winning bids meet or exceed the Reserve Price. The difference of the Guarantee Price and the price paid by Buyer’s at the auction, if indeed that price is lower than the Guarantee Price, is covered by a Results Based Financing (RBF) fund provided by the GIZ/Energising Development (EnDev) programme and implemented by SNV Netherlands Development Organisation for this project.
The winning bid for a Lot at auction. It is the price upon which the Auctioneer’s hammer falls, determining the sale price, but does not include the Buyer's Premium. In the case of The Stove Auction, there is no physical hammer since the bids take place via SMS messaging, but this terminology is used as a reference to the winning bid.
IWA Tiers of Performance
The International Organization for Standardization (ISO) International Workshop Agreeement (IWA) outlines four indicators for rating performance, each along five tiers. Tier 4 is the highest performing and Tier 0 is the lowest performing. The IWA also specifies minimum requirements for methodology. Tiers of Performance for efficiency, total emissions, and indoor emissions are determined by taking the minimum of the low power and high power metrics. This definition of Tiers may change with future updates to the ISO IWA in the ongoing standards development process. [Source: Global Alliance for Clean Cookstoves website.
The process of when a Lot is sold to a Bidder, indicated by the fall of the hammer at the Sale. In the case of The Stove Auction, there is no physical hammer since the bids take place via SMS messaging, but this terminology is used as a reference to the process of when a Lot is sold to a winning Bidder.
In the case of The Stove Auction, a Lot is more than one homogeneous stove unit that can be split up among different Buyers. Each stove model is assigned a different Lot number per auction.
The Market-Clearing Price represents the lowest winning bid at the auction, which is posted publically on The Stove Auction website.
Market Regulation Committee (MRC)
The role of the MRC is to determine the stove selection criteria, the volumes of stoves that enter into The Stove Auction, setting the level of RBF incentive to Sellers/Buyers and the timeframe for such incentive, and enacting any other regulatory measures on the scheme to prevent market distortion or forms of misconduct such as but not limited to collusion, fraud, corruption. The MRC consist of SNV at both regional and country level with representation from GIZ/EnDev.
Notice to Bidders
Detailed information provided to Bidders and Buyers about the auction that is posted publically on The Stove Auction website, which is referenced in legal agreements such as the Contract for Sale and the Buyer's Agreement.
Particulate Matter (PM2.5)
Fine particulate matter (PM2.5) is an air pollutant that is a concern for people's health when levels in air are high. PM2.5 are tiny particles in the air that reduce visibility and cause the air to appear hazy when levels are elevated. Particles in the PM2.5 size range are able to travel deeply into the respiratory tract, reaching the lungs. Exposure to fine particles can cause short-term health effects such as eye, nose, throat and lung irritation, coughing, sneezing, runny nose and shortness of breath. Exposure to fine particles can also affect lung function and worsen medical conditions such as asthma and heart disease. Scientific studies suggest that long term exposure to fine particulate matter may be associated with increased rates of chronic bronchitis, reduced lung function and increased mortality from lung cancer and heart disease. People with breathing and heart problems, children and the elderly may be particularly sensitive to PM2.5.
Every stove that goes to auction is photographed in high resolution by The Stove Auction for documentary and promotional purposes. Photographs appear in our online Catalogue of Products, and are an important way for Bidders to identify lots that they wish to acquire.
With specialists on-hand to answer all questions, The Stove Auction has sample stoves from its sales on display in their warehouse. Exhibitions are by appointment only.
The aggregate of the Hammer Price and VAT on the Hammer Price (where applicable), the Buyer’s Premium and VAT on the Buyer’s Premium and any other amount due to The Stove Auction in whatever capacity and howsoever arising.
The Reserve is the minimum price set by The Stove Auction’s Market Regulation Committee for each stove model per auction. If Buyer’s bid below the Reserve at auction, the property will go Unsold. Reserves are exclusive of Seller’s Fee plus VAT and reimbursable Expenses.
Immediately following every auction, Results are posted online in the currency of the auction location. Customarily, results include the Market Clearing Price.
Results Based Financing (RBF)
RBF disburses public resources not for project inputs but in response to demonstrated, independently verified outputs or outcomes, thus shifting investment and performance risks from the public to the private sector. Governments can play a facilitating role, providing policy support and financial incentives to motivate market development, while the private sector responds to incentives and delivers the desired results. [Source: The World Bank Group, Results-Based Financing to Promote Clean Stoves: Initial Lessons from Pilots in China and Indonesia]
The possibility that a Lot may be lost, damaged, destroyed, stolen, or deteriorate in condition or value.
The specific auction at which a Lot is to be offered for sale by The Stove Auction.
The net amount due to the Seller from the Sale of a Lot, being the Hammer Price plus any applicable local taxes that may apply less the Seller's Fee and VAT chargeable on the Seller's Fee, and any other amount due to The Stove Auction in whatever capacity and howsoever arising.
The owner who is transferring property to The Stove Auction to act as agent on his or her behalf for Sale.
A fee paid by the Seller to The Stove Auction for Auction Services.
An expert in biomass cookstoves and local market conditions.
The Stove Auction
The Stove Auction means the wholesale auction implemented by CQC Cambodia that is dedicated to the sale of advanced biomass cookstoves in Cambodia, being a market mechanism developed by SNV Netherlands Development Organisation and funded by GIZ Energising Development’s (EnDev) Results Based Financing programme.
A Stove Unit consists of one stove model, its packaging, and all accessories and documentation that comes with it, which is described in the Consignment Order Form.
Property consigned to The Stove Auction that goes unsold at auction.
Value added tax at the prevailing rate at the date of the Sale in the country of the auction location.
An Independent Verification Auditor (IVA), hired by SNV Netherlands Development Organisation, verifies Seller’s RBF Claims through a desk-based document check consisting of transaction records from the Auction; and Buyer’s RBF Claims by conducting telephone and physical inspections at household level on a sample of sold Stove Units to end-consumers selected by SNV. RBF payments are made by SNV only after successful verification is achieved.
Water Boiling Test (WBT)
The Water Boiling Test (WBT) is a laboratory-based test that can be used to measure how efficiently a stove uses fuel to heat water in a cooking pot and the quantity of emissions produced while cooking. [Source: Global Alliance for Clean Cookstoves website]
The Stove Auction's Website at http://www.thestoveauction.org