Per The Stove Auction’s original guidelines as published on the Guidelines for Buyers webpage, every year of operation The Stove Auction reduces the amount of RBF cash incentive that can be claimed per auction stove that is sold to an end-consumer and successfully verified. The Stove Auction is about to complete the second year of operations and according to the original plan, RBF Cash Incentives for Year 3 stoves would be reduced to Premium Level: EUR 11.52 and Standard Level: 7.68. It has been decided by The Stove Auction Market Regulation Committee, that consists of EnDev, SNV, and CQC Cambodia, that the RBF Incentive Level to Buyers will be adapted from the original planning to the below scheme in order to incentivize more sustainable retail pricing by distributors. In summary, distributors that retail their stoves at 100% plus of the Guarantee Price can receive higher RBF Cash Incentives as compared to the original plan. Distributors that retail their stoves at less than 80% of the Guarantee price receive lower RBF Cash Incentives as compared to the original plan. The existing rule that stoves sold at retail prices below the auction purchase prices receive zero incentive still applies.
Retail Sales Price Monitoring
The retail sales price information in the Sales Reports submitted by the distributors to The Stove Auction as part of the RBF Claim Process will be the primary way of determining the level of RBF under this revised scheme. This sales information will be cross-checked against the pricing information that is verified on a sample basis by the IVA. The Auction manager will download the verification data results and review the pricing information, which will either show that the customer confirms they purchased the stove for the retail price as listed in the Sales Report, or if not, the price they claim they have paid for the stove. If there are differences in retail prices reported by distributors and end-customers, the retail prices reported by end-customers will be used, and the level of RBF will be adjusted accordingly based on a percentage basis of the results from the sampled households that underwent verification.
The retail sales price information in the Sales Reports submitted by the distributors to The Stove Auction as part of the RBF Claim Process will be the primary way of determining the level of RBF under this revised scheme. This sales information will be cross-checked against the pricing information that is verified on a sample basis by the IVA. The Auction manager will download the verification data results and review the pricing information, which will either show that the customer confirms they purchased the stove for the retail price as listed in the Sales Report, or if not, the price they claim they have paid for the stove. If there are differences in retail prices reported by distributors and end-customers, the retail prices reported by end-customers will be used, and the level of RBF will be adjusted accordingly based on a percentage basis of the results from the sampled households that underwent verification.
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