Punjab Chief Minister Bhagwant Singh Mann has announced a major relief measure for domestic electricity consumers by introducing a One-Time Settlement (OTS) scheme to clear outstanding power bills. Under the initiative, penalties and interest on pending bills up to March 31, 2026, will be completely waived, allowing eligible consumers to settle their dues by paying only the principal amount.
Announcing the decision through a social media post, Mann said the scheme would benefit more than 24 lakh families across Punjab, providing an estimated financial relief of Rs 518 crore. The move is also expected to help households whose electricity connections were disconnected because of unpaid bills.
Under the proposed payment arrangement, consumers will have to deposit 25 per cent of the outstanding principal amount initially, while the remaining 75 per cent can be paid in two instalments over the following one year. With the waiver of accumulated penalties and interest, the government aims to make settlement more manageable for families facing financial difficulties.
The scheme is significant for households whose unpaid electricity bills have grown substantially over time due to the accumulation of additional charges. By offering relief on penalties and interest, the government is seeking to provide consumers an opportunity to clear their liabilities and restore disconnected connections, subject to the applicable scheme conditions.
The announcement is part of the Punjab government’s broader effort to extend household-level financial relief and address pending electricity dues. Its actual impact will depend on the detailed implementation guidelines, eligibility conditions and the process prescribed by the Punjab State Power Corporation Limited (PSPCL).
