Chandigarh: The Punjab government has introduced a One-Time Settlement (OTS) scheme to provide relief to domestic electricity consumers struggling with unpaid bills. Under this initiative, eligible consumers will be able to clear their outstanding electricity dues by paying only the original principal amount, while interest and penalties will be waived.
The scheme covers electricity bills pending up to March 31, 2026, and will remain open for 45 days from the date of the official circular. According to the government, approximately 25 lakh electricity consumers across Punjab are expected to benefit from this initiative.
Chief Minister Bhagwant Singh Mann announced that the scheme is intended to help defaulting consumers settle their pending bills and reduce their financial burden.
Punjab OTS Scheme: Pay Only the Principal Amount
Under the new OTS arrangement, eligible domestic consumers will not have to pay accumulated interest and late-payment penalties on their outstanding electricity bills.
Instead, they can settle their dues by depositing the original unpaid amount. Consumers whose electricity connections have been disconnected due to non-payment may also get an opportunity to restore their connections after clearing the applicable principal amount.
The government has also provided an option for consumers to clear their outstanding dues through affordable instalments, making repayment easier for those unable to pay the entire amount at once.
The scheme is particularly relevant for consumers whose unpaid bills have increased over time because of additional interest and penalties.
Free Electricity Benefit to Continue for Eligible Consumers
The Punjab government has also clarified that consumers who clear their previous electricity dues will continue to remain eligible for the benefit of 300 units of free electricity every month, subject to the applicable conditions.
According to the government, electricity bills for around 90% of domestic consumers have already become zero under the existing free electricity provision.
The latest settlement initiative is expected to give additional relief to households that have accumulated electricity arrears and are looking to regularise their connections.
OTS Scheme for Traders Extended by Four Months
Apart from domestic electricity consumers, the Punjab government has also extended the deadline for its existing One-Time Settlement scheme for traders by another four months.
The extension will allow traders, retailers and business owners to settle their pending tax liabilities, including old VAT and Central Sales Tax (CST) dues.
Under this arrangement, eligible businesses can deposit the principal tax amount and seek a waiver of applicable interest and penalties.
The deadline has been extended following requests from various trade organisations, giving business owners additional time to take advantage of the settlement facility.
Government Focuses on Clearing Pending Dues
The Punjab government’s OTS initiative aims to bring long-pending defaulters into the settlement framework and resolve outstanding financial disputes.
Through the scheme, the government intends to provide an opportunity to eligible consumers and businesses to clear their dues without bearing the additional burden of accumulated interest and penalties.
However, the electricity and tax departments may take legal action against defaulters and tax evaders wherever applicable.
The 45-day window for the domestic electricity settlement scheme makes it important for eligible consumers to check their outstanding balances and complete the settlement process within the prescribed period.
Disclaimer: This article is intended for general informational purposes only. The eligibility criteria, settlement amounts, waiver provisions and application deadlines are subject to official Punjab government notifications and departmental guidelines. Consumers and traders should verify the latest scheme details with the concerned electricity or tax department before making payments or submitting applications.