A gift for 2.5 million electricity consumers in Punjab: Government introduces an OTS scheme with concessions on outstanding bills..

The Punjab government has announced a major relief measure for electricity consumers with outstanding dues. A One-Time Settlement (OTS) scheme has been launched for these consumers. Under this scheme, domestic electricity consumers are required to pay only the principal amount of their outstanding bills, with a complete waiver of interest and penalties. The scheme will remain in effect for 45 days from the date of the circular's issuance and is expected to benefit 2.5 million (25 lakh) electricity consumers in Punjab. Punjab Chief Minister Bhagwant Singh Mann stated that consumers will only need to pay the principal component of their pending electricity bills, while interest and penalties will be waived. This scheme applies to outstanding bills accumulated up to March 31, 2026. Details regarding the OTS scheme and the applicable waivers will be communicated to the consumers with outstanding dues.

What is the One-Time Settlement (OTS) scheme?
The government has announced that late fees and interest accrued on old outstanding dues will be waived. In many cases, consumers will have the opportunity to restore their electricity connections by paying only the principal amount. Furthermore, they will be able to pay their outstanding dues in easy installments, preventing a sudden, heavy financial burden. The Punjab government has clarified that consumers who clear their old dues will continue to be eligible for the 300 units of free electricity per month scheme. Notably, the electricity bills for 90 percent of domestic consumers have already been reduced to zero.

Extension of the OTS scheme for businesses
The OTS scheme for business owners has also been extended. The Punjab One-Time Settlement scheme will remain in force for an additional four months. This highly concessional scheme allows traders and retailers in Punjab to settle old outstanding taxes, including VAT, CST, and other levies. The government extended the deadline in response to requests from various trade organizations. By paying the principal amount of their outstanding dues, businesses can secure a waiver on interest and penalties.

The Punjab government has stated that the primary objective of the OTS scheme is to bring defaulting consumers under the ambit of this relief initiative. Action will also be taken against defaulters and those involved in tax evasion, alongside the resolution of legal disputes. The electricity department and the tax department may initiate legal proceedings.

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