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PSPCL penalises Ludhiana man for one year despite approved relief
Reportedly, Nitin Walia, a commercial consumer whose power connection was disconnected over pending dues of ₹2.3 lakh, had applied for settlement under the OTS scheme in October 2024
Nearly a year after applying for relief under the Punjab State Power Corporation Limited’s (PSPCL) much touted One Time Settlement (OTS) Scheme, introduced to help defaulters clear their pending dues; a consumer from the Aggar Nagar division continues to face official apathy despite following all due procedures, officials familiar with the matter said.
Reportedly, Nitin Walia, a commercial consumer whose power connection was disconnected over pending dues of ₹2.3 lakh, had applied for settlement under the OTS scheme in October 2024. As per official records, his case was approved with a rebate of ₹60,390, giving him a chance to clear his dues at a reduced amount. However, a year later, Walia noted that he continues to be penalised and has received no relief or official communication from the department to settle his case.
‘Case not resolved due to departmental negligence’
Voicing his concerns, Walia said, “I had pending bills of ₹2.3 lakh on my commercial meter, which was disconnected by the department. After learning about the OTS Scheme through an advertisement, I applied for settlement and paid the ₹2,000 processing fee in November 2024. The officials even confirmed a rebate of ₹60,390, but it was never credited to my account. I filed an application, yet I was never informed about the outcome. Even if my case was rejected, they should have at least notified me.”
Explaining the process, officials from the Aggar Nagar division said that whenever a consumer applies under the OTS scheme, they must submit a processing fee and an undertaking. The case is then reviewed by an OTS committee comprising the additional superintending engineer, XEN, and accounts officer. If the application is rejected, the committee must inform the consumer along with the reasons for rejection.
However, in Walia’s case, after receiving his application, officials prepared an estimate approving him a rebate of ₹60,390 on his pending dues of ₹2.3 lakh. As per norms, this rebate was to be credited after approval and signatures from the accounts officer and the XEN concerned. Following this, Walia’s pending amount would have reduced to around ₹1.7 lakh, payable either in one go or in four instalments before December 31, 2024.
However, due to official negligence, the process was never completed, leaving his case unresolved even after a year.
To make matters worse, Walia’s outstanding amount which should have been frozen in PSPCL’s billing system after applying under the scheme continues to accrue interest at 1.5% per month, effectively penalising him instead of offering relief, defeating the very purpose of the OTS initiative, officials said.
They further revealed that the department’s internal auditor had sought a report on the disconnection of Walia’s meter in January 2025, but the report is yet to be submitted, exposing serious lapses and procedural delays within the system. “This is not the first case where a consumer seeking benefits under the OTS scheme has suffered due to departmental negligence. Additionally, they have not informed them about the intricacies of OTS scheme, adding to their woes,” they added.
Not aware of matter, will look into it: Chief engineer
As per the September 23, 2024 circular, the Punjab State Power Corporation Limited (PSPCL) launched the OTS Scheme to help defaulting consumers clear their long pending dues as of September 30, 2023. The scheme was applicable to both active and disconnected consumers, including domestic, commercial, and small industrial connections.
Under the initiative, consumers could settle dues with a simple interest of 9% per annum instead of the usual delayed payment surcharge of up to 18%. Consumers whose connections were disconnected before March 31, 2024, were also eligible by paying their pending amount along with the approved rebate.
Once processed, PSPCL’s system was supposed to freeze further interest accumulation, and the rebate was to be automatically calculated based on the age and category of the bill. For disconnected consumers, the rebate amount after approval by the senior executive engineer (commercial) had to be adjusted in their final dues before payment, the circular reads.
When contacted, chief engineer Jagdev Hans said, “We have handled all cases under the OTS scheme as per the instructed guidelines. I am not aware of this particular case but will look into the matter to resolve his grievances.”
