OTS Scheme: The Punjab government has announced a major relief for consumers with overdue electricity bills by launching a one-time settlement (OTS) scheme. Under the scheme, domestic consumers need to pay only the principal on their outstanding bills, with interest and penalties fully waived. The offer will remain valid for 45 days from the circular’s issue date and is expected to benefit 2.5 million electricity consumers across Punjab.

OTS Scheme Announced

Punjab Chief Minister Bhagwant Singh Mann said consumers will be required to pay only the principal amount of their unpaid electricity bills, while interest and penalties will be waived. The scheme covers bills outstanding up to March 31, 2026. Defaulting customers will receive an OTS offer for a discounted settlement of their bills.

 

What is the one-time settlement scheme?

According to the government, late fees and interest on past-due amounts will be waived. In many cases, consumers can restore their electricity connections by paying only the principal. They may also clear their dues through affordable installments, easing the financial burden. The Punjab government said consumers who have cleared their old bills will remain eligible for 300 units of free electricity per month. Electricity bills for 90 percent of domestic consumers have been reduced to zero.

The deadline for the OTS scheme for traders has been extended

The deadline for the existing OTS scheme for traders has also been extended by four months. Punjab’s traders and retailers can continue to use this concessional scheme to settle old VAT, CST, and other tax dues. The government extended the deadline in response to requests from trade organizations. Participants can repay the principal amount and apply for a waiver of interest and penalties.

The Punjab government states that the purpose of the OTS scheme is to bring defaulters under the scope of the main relief scheme. Legal disputes will also be resolved and action will be taken against defaulters and tax evaders. The electricity department and the tax department can take legal action.