CM Mann announces Rs 518 crore relief on power bills for 24.86 lakh families

The Punjab government has announced a one-time settlement (OTS) scheme offering a 100 percent waiver on penalties and interest on outstanding domestic electricity bills up to March 31, 2026.

Chief Minister Bhagwant Singh Mann said the scheme would benefit 24.86 lakh families, with the government waiving ₹518 crore in penalties and interest. Consumers will have to pay only the principal amount to settle their outstanding dues.

Announcing the decision, Chief Minister Mann said the initiative was aimed at providing relief to households struggling to clear electricity bills because of financial difficulties.

Under the scheme, consumers will have to deposit 25 percent of the principal amount upfront, while the remaining 75 percent can be paid in two instalments over one year. Those facing financial difficulties may also be given an additional six months to complete the payments.

While addressing the press conference in Chandigarh, the chief minister said that the scheme will cover both operational and disconnected domestic electricity connections. Consumers whose connections have been disconnected will be eligible for restoration after clearing the principal amount under the settlement arrangement.

Mann said the scheme would cover outstanding liabilities of around ₹2,516 crore involving 24.86 lakh domestic consumers. The waiver of ₹518 crore would remove the additional burden of accumulated late payment surcharges and interest.

The scheme will remain open for 45 days from the issuance of the commercial circular. The notification is scheduled to be issued on Saturday, November 14, after which it will come into effect.

The Punjab State Power Corporation Limited (PSPCL) will send special OTS bills and notices to eligible consumers within seven days. These will detail the total outstanding amount, the interest and penalties being waived, and the principal amount payable.

The Chief Minister said the payment process had been simplified, with revised dues automatically updated in the system after online payment. Consumers will also be able to view the revised amount in their online accounts and electricity bills.

Appealing to eligible households to take advantage of the scheme within the stipulated period, Mann said the government wanted to give families an opportunity to clear their outstanding bills without the additional burden of penalties and interest.