Bhagwant Mann Govt Introduces One-Time Settlement Scheme, Waives 100% Penalty & Interest On Outstanding Electricity Bills
Consumers Can Avail Benefits For 45 Days On Outstanding Bills Up To March 31, 2026: CM Bhagwant Singh Mann
Consumers To Pay 25% Upfront & Remaining 75% Of Principal Dues In 2 Instalments Within One Year: CM Bhagwant Singh Mann
Disconnected Electricity Connections To Be Restored Upon Payment Of Outstanding Principal Amount: CM Bhagwant Singh Mann
Power Department To Send OTS Bills Detailing Outstanding Dues, Waived Penalties & Payable Amount: CM Bhagwant Singh Mann
CHANDIGARH, 13th November 2026:
In a major gift to Punjab’s domestic electricity consumers, Chief Minister Bhagwant Singh Mann has announced a One-Time Settlement (OTS) Scheme that will waive 100% of penalties and interest on outstanding electricity bills up to March 31, 2026. The scheme will benefit 24.86 lakh families, with ₹518 crore in penalties and interest waived, allowing consumers to clear only their principal dues through easy instalments. Even disconnected electricity connections will be restored upon payment of the principal amount, bringing substantial relief to households across Punjab.
Taking to X, CM Bhagwant Singh Mann stated: “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, CM Bhagwant Singh Mann said that the initiative is another decisive step towards ensuring that financial difficulties do not become an additional burden on ordinary families. He said that the government believes governance is not merely about collecting revenue but about standing firmly with people during difficult times. “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.
The Chief Minister stated that the scheme would benefit 24.86 lakh domestic consumers against outstanding electricity dues of approximately ₹2,516 crore, with ₹518 crore being waived by the state government. “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.
Explaining the payment mechanism, he said that eligible consumers would be required to deposit 25% of their outstanding principal amount initially, while the remaining 75% could be paid in a maximum of six equal monthly installments. He added that consumers facing financial difficulties could also be provided an additional extension of six months for completing their payments. “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,” said the Chief Minister.
CM Bhagwant Singh Mann said that the scheme would cover all domestic electricity consumers, irrespective of whether their electricity connections were currently operational or had been disconnected. “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,” he said.
The Chief Minister said that the scheme would cover all outstanding electricity liabilities up to March 31, 2026, and remain open for 45 days from the issuance of the commercial circular. He said that the notification would be issued on Saturday, November 14, following which the scheme would come into immediate effect. CM Bhagwant Singh Mann appealed to all eligible domestic electricity consumers to take advantage of the scheme within the stipulated 45-day period and settle their outstanding dues.
CM Bhagwant Singh Mann further said that the Punjab State Power Corporation Limited (PSPCL) would dispatch special OTS bills and notices to all eligible consumers within the next seven days. These bills would clearly specify the total outstanding amount, the surcharge and interest being waived, and the actual principal amount payable under the scheme. “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,” he said.
The Chief Minister said that the payment process has also been made simple and consumer-friendly, with the revised amount automatically updated in the system as soon as the requisite payment was made online. The updated details would be reflected in the consumer’s online account as well as the revised electricity bill. “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,” said CM Bhagwant Singh Mann.
Reiterating the government’s commitment to public welfare, he said, “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.”
Appealing to all eligible domestic electricity consumers to make full use of the scheme, CM Bhagwant Singh 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.”
