"The objective of having a long-term plan is to ensure that load-shedding is avoided to the extent practicable, and adequate capacity is contracted under long, medium and short-term agreements at optimum prices," the regulator said.
The move is aimed at uninterrupted supply to the consumers 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 would remain in force till March 31, 2016.
The framework would provide a regulatory certainty tothe utilities, investors and consumers by promoting transparency, consistency and predictability of tariffs, and minimising the perception of regulatory risk, MERC said.
"It will help in addressing the risk sharing mechanism between utilities and consumers based on controllable and uncontrollable factors and ensure financial viability of the sector to attract investment, ensure growth and safeguard the interest of the consumers," it said.
Source- Times of India