Chandigarh: Punjab Chief Minister Bhagwant Singh Mann has announced a major relief measure for domestic electricity consumers in the state by introducing a One-Time Settlement (OTS) Scheme for outstanding electricity bills. Under the scheme, consumers will receive a 100% waiver on penalties, late payment surcharges and interest on unpaid electricity bills up to March 31, 2026.
The initiative is expected to benefit around 24.86 lakh domestic electricity consumers across Punjab. The state government will waive penalties and interest amounting to approximately ₹518 crore, providing relief to families struggling to clear their accumulated electricity dues.
Announcing the decision, Chief Minister Bhagwant Singh Mann said the scheme aims to reduce the financial burden on ordinary households and give consumers an opportunity to clear their outstanding electricity bills through an easy payment mechanism.
Punjab OTS Scheme: 24.86 Lakh Electricity Consumers to Benefit
Addressing a press conference, CM Mann said the scheme would cover outstanding electricity dues of approximately ₹2,516 crore belonging to 24.86 lakh domestic consumers.
Of this amount, ₹518 crore in penalties and interest will be waived by the state government. Eligible consumers will only have to pay the original outstanding principal amount without the additional burden of late payment surcharges and accumulated interest.
The Chief Minister said the initiative reflects the government’s commitment to supporting families facing financial difficulties and ensuring that accumulated penalties do not prevent them from clearing their electricity dues.
He added that the decision would provide households with an opportunity to settle their pending bills through a simplified process.
How Consumers Can Pay Outstanding Electricity Bills Under the OTS Scheme
Explaining the payment mechanism, CM Mann said eligible domestic electricity consumers would be required to pay only the principal outstanding amount under the scheme.
The payment structure will be as follows:
- 25% upfront payment: Consumers must deposit 25% of the outstanding principal amount initially.
- Remaining 75%: The balance amount can be paid in two easy instalments within one year.
- Additional time: Consumers facing financial difficulties can seek an additional six months to complete their payments.
The government has introduced this flexible payment arrangement to ensure that consumers facing financial constraints can also benefit from the scheme without having to pay the accumulated penalties and interest.
Disconnected Electricity Connections to Be Restored
The OTS Scheme will cover all eligible domestic electricity consumers, irrespective of whether their electricity connections are currently active or have been disconnected.
According to the Chief Minister, consumers whose electricity connections have been disconnected due to unpaid bills will also be eligible to participate.
Once such consumers clear the outstanding principal amount under the scheme, they will become eligible to get their disconnected electricity connections restored.
This provision is expected to provide significant relief to households that lost their electricity connections because of accumulated unpaid dues.
Punjab OTS Scheme to Remain Open for 45 Days
CM Bhagwant Singh Mann said the scheme would cover all outstanding electricity dues up to March 31, 2026.
The OTS Scheme will remain open for 45 days from the date of issuance of the relevant official circular. The notification is scheduled to be issued on Saturday, November 14, 2026, following which the scheme will come into effect immediately.
The Chief Minister appealed to all eligible domestic electricity consumers to take advantage of the 45-day window and settle their outstanding electricity bills within the prescribed period.
PSPCL to Send Special OTS Bills and Notices Within Seven Days
To make the implementation process easier, the Punjab State Power Corporation Limited (PSPCL) will send special OTS bills and notices to all eligible consumers within seven days.
These bills and notices will clearly mention:
- The total outstanding electricity bill amount.
- The penalties and interest being waived by the government.
- The actual principal amount payable under the OTS Scheme.
The Chief Minister said the objective was to ensure complete transparency so that every eligible consumer could understand the outstanding dues, the amount being waived and the payment required to avail the scheme.
Online Payments to Automatically Update Revised Electricity Dues
The Punjab government has also simplified the payment process by introducing an automatic system for updating revised outstanding amounts after online payments.
Once a consumer makes an online payment, the revised outstanding amount will automatically be updated in the system. The updated details will also be reflected in the consumer’s online account and revised electricity bill.
CM Mann said the simplified mechanism would eliminate unnecessary procedures and make it easier for consumers to complete their payments.
CM Bhagwant Mann Appeals to Consumers to Avail OTS Benefits
Reiterating the government’s commitment to public welfare, Chief Minister Bhagwant Singh Mann said the initiative was aimed at helping ordinary families overcome the burden of accumulated electricity dues.
He said the waiver of ₹518 crore in penalties and interest would give lakhs of households an opportunity to clear their outstanding accounts through a convenient payment system.
The Chief Minister urged all eligible domestic electricity consumers to make use of the 45-day settlement window and benefit from the scheme.
He added that the government remained committed to improving people’s lives and ensuring that the benefits of development and public welfare measures reached every household in Punjab.
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