Punjab Chief Minister Bhagwant Singh Mann has announced a One-Time Settlement (OTS) scheme to provide relief to domestic electricity consumers struggling with outstanding power bills. Under the scheme, penalties and interest on eligible dues accumulated up to March 31, 2026, will be waived entirely, leaving consumers liable to pay only the original outstanding amount.
According to the Chief Minister, the initiative is expected to benefit more than 24 lakh households across the state, with the total relief estimated at Rs 518 crore. Consumers will be required to deposit 25 per cent of the principal amount initially, while the remaining 75 per cent can be cleared through two instalments within one year.
An important feature of the initiative is the proposed restoration of electricity connections that were disconnected because of unpaid bills, subject to the applicable scheme conditions. The relief is expected to offer an opportunity to affected families to settle their pending dues without the additional burden of accumulated interest and penalties.
Announcing the decision on social media, Mann described the scheme as a step towards providing direct financial relief to households and making it easier for consumers to regularise their electricity accounts.
The initiative could also help PSPCL recover a portion of its long-pending domestic dues while giving financially distressed consumers a practical route to clear their liabilities. The detailed eligibility criteria, application procedure and reconnection arrangements will be governed by the formal scheme notification.