Chandigarh: The Punjab government has announced a one-time settlement (OTS) scheme to provide relief to domestic electricity consumers struggling with outstanding power bills. Under the scheme, the government will waive Rs 518 crore in penalties and interest from total pending dues of Rs 2,516 crore, benefiting around 24.86 lakh consumers across the state.
Chief Minister Bhagwant Mann announced the decision at a press conference on Friday, saying that eligible consumers would not have to pay any penalty or interest accumulated on their unpaid electricity bills.
The scheme will cover domestic electricity bills that were outstanding as of March 31, 2026. Consumers will only need to clear the original bill amount, while the applicable penalties and interest will be waived.
How Will Punjab’s Electricity Bill Waiver Scheme Work?
The government has kept the process simple to ensure that eligible households can access the benefit without additional paperwork.
Consumers will not need to visit electricity offices or submit separate applications to claim the waiver. The eligible relief amount will automatically be deducted from their outstanding dues, and revised bills under the OTS scheme will be sent to them.
According to the Chief Minister, consumers will have 45 days from the date of notification to settle their pending bills and avail themselves of the scheme.
Disconnected Electricity Connections To Be Restored
The scheme also offers relief to households whose electricity meters or connections were disconnected because of unpaid bills.
Such consumers will be eligible to get their connections restored after clearing the outstanding principal amount. The reconnection process will be initiated once the payment is made.
With the waiver covering penalties and interest, the government expects the scheme to help lakhs of households clear long-pending electricity dues and restore disconnected connections.
The OTS initiative is aimed at resolving accumulated domestic power bill arrears while giving consumers a limited window to settle their original dues without the additional financial burden of penalties and interest.
