Mumbai, Feb 2 (PTI) State electricity regulator MERCtoday announced a multi-year tariff (MYT) framework, underwhich utilities would have to submit a five-year business planto ensure uninterrupted power supply at reasonable rates andavoid load-shedding.
Under the plan, the companies would have to providetheir demand-supply projections, power procurement plans andcapital investments, Maharashtra Electricity RegulatoryCommission (MERC) said here.
"The objective of having a long-term plan is to ensurethat load-shedding is avoided to the extent practicable, andadequate capacity is contracted under long, medium and short-term agreements at optimum prices," the regulator said.
The move is aimed at uninterrupted supply to theconsumers at affordable rates and also avoiding short-termpower purchase contracts, it said.
The new regulations, applicable for all the existingand future players, come into effect from April 1 and wouldremain in force till March 31, 2016.
The framework would provide a regulatory certainty tothe utilities, investors and consumers by promotingtransparency, consistency and predictability of tariffs, andminimising the perception of regulatory risk, MERC said.
"It will help in addressing the risk sharing mechanismbetween utilities and consumers based on controllable anduncontrollable factors and ensure financial viability of thesector to attract investment, ensure growth and safeguard theinterest of the consumers," it said.