STOR allows the National Grid to access reserves in the form of production or demand reduction and is purchased through tendering. As a rule, there are three rounds of tenders per year. All interested parties must pre-qualify before the call for tenders and sign a framework agreement. The FFR is open to a much wider range of participants than the MFF, with services obtained through a monthly call for tenders. Participation in the call for tenders and the signing of a framework agreement are subject. Tenders may be issued for low and/or high frequency events. One of the technical qualification criteria to be eligible for an FFR contract is the supply of at least 10 MW of response. The payment structure is defined in the system login and usage code and includes payments for availability, nomination fees and fees for the response energy actually provided. The COAG Council on Federal Financial Relations (CFFR) is responsible for overseeing the financial relationship between the Commonwealth and the states and territories, including the Intergovernmental Agreement on Federal Financial Relations (IGA FFR).

The Council is composed of Commonwealth, State and Territorial Treasurers. On the CFFR website you will find information on the framework of the Confederation`s financial relations, including all financing agreements under the IGA FFR. As with STOR, the rapid reserve is obtained through a monthly call for tenders and requires pre-qualification and the conclusion of a framework contract prior to the call for tenders. Successful participants will receive an availability fee for each hour for a prescribed period of time during which the service is available and a fee for the use of the energy provided. The supplier may also be entitled to a maintenance fee. Note: On May 29, 2020, the National Cabinet agreed that the Federal Financial Relations Board would be responsible for all commonwealth-state funding agreements, including reviewing the agreement process. Before you start working on an agreement, please contact your usual treasury contact or fgffu@treasury.gov.au for the most up-to-date information. This service is provided through tailor-made bilateral negotiations with suppliers.

Once the trigger equipment is installed and tested, a site can join the program, subject to the signing of an FCDM additional service contract. Once a supplier has agreed on terms, they are required to report weekly availability for each billing period. National Grid then decides whether this availability is accepted and, if accepted, an availability fee will be paid. For more information on assisting in the drafting and development of new agreements within the federal framework of financial relations, please see the guide below, which is the toolkit for authors of new agreements. The IGA FFR sets the framework for the Commonwealth`s financial relations with states. . . .