Chandigarh, November 14, 2026: Punjab Chief Minister Bhagwant Singh Mann has announced a major financial relief measure for domestic electricity consumers across the state, introducing a One-Time Settlement (OTS) Scheme that will benefit approximately 24.86 lakh families.
Under the new scheme, the Punjab government will waive 100 per cent of penalties and interest on outstanding domestic electricity bills up to March 31, 2026. The initiative is expected to provide financial relief worth approximately ₹518 crore, allowing eligible consumers to clear their pending electricity dues by paying only the principal amount.
Announcing the decision on Friday, November 13, Mann said the scheme was intended to help families struggling with accumulated electricity bills, late-payment penalties and interest.
100% Waiver on Penalties and Interest
The most significant feature of the OTS scheme is the complete waiver of penalties and interest accumulated on eligible unpaid electricity bills.
According to the Chief Minister, the total outstanding electricity dues covered by the initiative amount to approximately ₹2,516 crore. The government will waive around ₹518 crore in penalties and interest, providing relief to millions of households.
Consumers will be required to pay only the original principal amount of their outstanding electricity bills.
Consumers Can Pay Outstanding Dues in Instalments
To make repayment easier, the government has introduced a flexible payment arrangement under the scheme.
The payment structure includes:
- 25% upfront payment: Consumers must initially deposit 25 per cent of their outstanding principal amount.
- Remaining 75%: The balance can be paid in two instalments within one year.
- Additional time: Consumers facing financial difficulties may be eligible for an additional six-month extension, subject to the applicable scheme provisions.
The arrangement is intended to help eligible households settle their outstanding electricity accounts without the additional financial burden of accumulated penalties and interest.
Disconnected Electricity Connections Also Eligible
In another important provision, the scheme will cover domestic electricity consumers whose connections have already been disconnected because of unpaid bills.
Such consumers will also be eligible to benefit from the settlement arrangement. Their disconnected electricity connections can be restored after they clear the outstanding principal amount in accordance with the scheme’s conditions.
This provision is expected to provide an opportunity for many households to restore their electricity supply without having to pay accumulated late-payment penalties and interest.
Scheme Available for 45 Days
The One-Time Settlement Scheme will cover outstanding electricity liabilities up to March 31, 2026.
According to the Chief Minister, eligible consumers will have 45 days from the issuance of the official commercial circular to take advantage of the scheme.
The formal notification was scheduled for November 14, 2026, following which the scheme would come into effect.
The Punjab State Power Corporation Limited (PSPCL) will also send special OTS bills and notices to eligible consumers within seven days. These documents will provide details of:
- Total outstanding electricity dues.
- Penalties and interest being waived.
- Actual principal amount payable.
- Payment requirements under the settlement scheme.
Consumers will also be able to see updated outstanding amounts in their online accounts and revised electricity bills after making the required payments.
Scheme Covers 24.86 Lakh Domestic Families
The announcement is expected to benefit approximately 24.86 lakh domestic electricity consumer families across Punjab.
The government has positioned the scheme as an opportunity for households with accumulated electricity arrears to settle their accounts through a structured repayment mechanism.
The initiative also covers consumers with both active and disconnected electricity connections, subject to the scheme’s eligibility conditions.
What Punjab Electricity Consumers Should Know
The newly announced OTS scheme provides an opportunity for eligible domestic consumers to settle their old electricity dues without paying accumulated penalties and interest.
Consumers should check their outstanding principal amounts, review the special OTS bills issued by PSPCL and complete the required payments within the stipulated 45-day window.
With an estimated ₹518 crore in penalties and interest being waived, the scheme represents a significant change in the settlement of pending domestic electricity bills across Punjab.
The detailed implementation and payment process will be governed by the official notification and commercial circular issued by PSPCL.
