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Punjab govt announced a one-time settlement scheme waiving Rs 518 crore in penalties and interest on domestic electricity bills, benefiting 24.86 lakh families.
File image of Punjab Chief Minister Bhagwant Singh Mann.
The Bhagwant Mann-led Punjab government has announced a one-time settlement (OTS) scheme offering complete waiver of penalties and interest on outstanding domestic electricity bills, providing relief to 24.86 lakh families across the state.
Under the scheme, consumers will have to clear only the principal amount of their pending dues, with the government waiving penalties and interest worth Rs 518 crore.
Announcing the decision on Friday, Chief Minister Bhagwant Singh Mann said the scheme would cover outstanding electricity bills up to March 31, 2026, and remain open for 45 days from the issuance of the commercial circular. The notification is scheduled to be issued on Saturday, November 14.
Taking to X, Mann said, “A major relief for domestic electricity consumers in Punjab. Today, we have announced an OTS (One-Time Settlement) Scheme for pending electricity bills. The penalty and interest on outstanding bills up to March 31, 2026, have been completely waived. Consumers will now have to pay only the principal amount, with 25% payable upfront and the remaining 75% in two easy installments over one year. This decision will directly benefit more than 24 lakh families, with ₹518 crore in penalties and interest being waived. Disconnected electricity connections will also be restored. Our government is truly a government of the people.”
Addressing a press conference, the Chief Minister said the scheme was intended to help households struggling to clear accumulated electricity dues. He said the government wanted to give such consumers an opportunity to settle their bills without the additional burden of late payment charges.
“Several families have been unable to clear their electricity bills due to financial constraints, and the burden of accumulated interest and penalties has continued to grow. We have decided to give them a fresh opportunity to settle their dues with dignity, without the additional burden of penalties and interest,” he said.
According to Mann, the scheme will cover 24.86 lakh domestic consumers with outstanding dues amounting to approximately Rs 2,516 crore. Of this, Rs 518 crore in penalties and interest will be waived, leaving consumers to pay only the principal amount.
“This is not merely a financial concession but a commitment to ease the lives of ordinary households. Consumers will now have to pay only the principal amount, while the entire burden of late payment surcharge and interest will be waived,” he said.
How The One-Time Settlement Scheme Works
Under the payment arrangement, consumers will have to deposit 25% of their principal dues upfront, while the remaining 75% can be paid in two instalments within one year. Mann said an additional six-month extension could also be offered to consumers facing financial difficulties.
“We want to ensure that no family is denied this opportunity because of financial constraints. The flexible payment mechanism will allow consumers to clear their dues conveniently without facing the burden of accumulated penalties and interest,” he said.
The scheme will also extend to households whose electricity connections have already been disconnected. Such consumers will be eligible for restoration of their connections after paying the outstanding principal amount under the settlement arrangement.
“Even consumers whose electricity connections have been disconnected can avail themselves of this opportunity. Once they settle the outstanding principal amount under the scheme, their disconnected connections will be eligible for restoration,” Mann said.
The Punjab State Power Corporation Limited (PSPCL) will send special OTS bills and notices to eligible consumers within seven days. These will provide a breakdown of the total outstanding dues, the amount waived as penalty and interest, and the principal sum that needs to be paid.
“The entire process has been designed to ensure maximum convenience and transparency. Every eligible consumer will receive a clear account of their outstanding dues, the amount being waived and the payment required to avail the scheme,” the Chief Minister said.
He added that the payment process would be streamlined, with the revised outstanding amount automatically updated in the system once the required payment is made online. The changes will also be reflected in consumers’ online accounts and revised electricity bills.
“Consumers will not have to go through unnecessary procedures. Once the payment is made online, the revised outstanding amount will automatically be updated and reflected in the system,” Mann said.
Appealing to eligible households to enrol within the 45-day window, the Chief Minister said the initiative was aimed at helping families settle pending electricity bills and reduce their financial burden.
“Every decision of our government is guided by the objective of bringing tangible benefits to ordinary people. The ₹518 crore waiver will provide lakhs of families an opportunity to come out of the burden of accumulated electricity dues and settle their accounts through a simple and convenient mechanism,” Mann said.
“Our government is committed to the well-being of every section of society and is leaving no stone unturned to improve people’s lives. The ultimate objective of the government is to ensure that the benefits of development reach every household and that people continue to receive meaningful support from the state government,” he said.
Quick Answers
Ask News18Under Punjab’s one-time settlement scheme, domestic consumers can clear outstanding bills up to March 31, 2026, with a 100% waiver on penalties and interest worth Rs 518 crore. Consumers are required to pay only the principal amount, with 25% payable upfront and the remaining 75% split into installments over one year.
Ask News18Amritsar, India, India
November 14, 2026, 11:48 IST
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