How Punjab's 300-unit free electricity scheme actually works
Punjab waives the bill for domestic users under 300 free units monthly. Cross that line and the bill reverts to normal rates, charged on every unit used, not just the units above the cap.
"Free electricity" sounds like a settled fact once you hear it, but it rarely is. Punjab's scheme genuinely zeroes out many household bills, yet most people never check what happens the month they go over the limit. That single detail matters more to your bill than anything else in this scheme.
Knowing where you stand starts with checking the number of units consumed. Bajaj Pay lays out your PSPCL bill upfront, acting as an information tool first and a payment tool second. Pay your PSPCL electricity bill with UPI, cards, net banking, or an e-wallet.
What the scheme actually promises, in plain terms
- 300 free units a month for domestic PSPCL users. On a two-month electricity bill, that adds up to 600 free units.
- Cross the line by even one unit, and the whole bill changes. You're charged the normal rate on every unit, not just the units above 300. This is the detail that trips people up.
- It's a full waiver, not a part-discount. Stay under the cap and the bill is zero. Go over, and there's no partial relief: you pay the standard rate on the entire bill.
- Home connections only. Shops, factories, and farm connections sit under different rate plans and don't get this waiver.
- Who pays for it: Punjab funds the waiver from its own budget. Government figures put power subsidy spending at Rs. 20,500 crore for 2025-26, per PRS India. Worth knowing, but it doesn't change what matters for your bill: how many units you used in the cycle.
Why your bill did not rise this year
PSPCL's own estimate for FY 2025-26 showed a deficit of Rs. 5,090.89 crore. PSERC's tariff order, looking at the same year, found a surplus of Rs. 311.50 crore. The number that mattered for you stayed the same either way: your rate didn't move. Your zero bill comes down to one number: total units used in the bill period.
What actually determines your free bill
Per PSERC's tariff order for FY 2026-27 (effective April 1, 2026), the price above 300 units is Rs. 7.05 per unit. This applies no matter how much load your home draws.
Here is one made-up example to show the stakes. One extra air conditioner through a hot month could push a home past 300 units. Once that happens, every single unit gets billed, not just the part above the line.
|
Connected load |
Rate up to 300 units |
Rate above 300 units |
|---|---|---|
|
Up to 2 kW |
Rs. 3.85 per unit |
Rs. 7.05 per unit |
|
Above 2 kW to 7 kW |
Rs. 4.25 per unit |
Rs. 7.05 per unit |
|
Above 7 kW to 20 kW |
Rs. 5.00 per unit |
Rs. 7.05 per unit |
Checking your own number before you assume zero
The only way to know which side of 300 units you sit on is to check, not guess.
- Check your bill history. Your PSPCL bill shows your past unit use, the simplest way to spot a hot month or a new device pushing you toward the cap.
- Don't assume the scheme covers you by default. Check your last two or three bills and note your average units.
- Treat anything close to 300 as a warning sign, not a sure thing. That's when to cut back on usage.
- A full-rate bill isn't permanent. If you do cross the line one cycle, treat it as that month's reading, not a lasting change. Cut usage back under 300 units the next cycle, and the waiver returns. There's no extra charge beyond the units you actually used.
Checking and paying your PSPCL bill
Once you know where you stand against the 300-unit line, paying or planning around it gets easier. Bajaj Pay shows your current PSPCL bill and recent payment history before you confirm anything, on the app or the website.
- Open the Bajaj Finance app or visit bajajfinserv.in and log in.
- Go to 'Bills and Recharges' and select 'Electricity'.
- Select 'PSPCL' and enter your consumer or account number.
- Review the bill amount and consumption details before confirming.
- Choose a payment method and complete the transaction to receive instant confirmation.
Punjab's free power scheme is real. Check your own consumption against the 300-unit line every billing cycle, rather than assuming the subsidy will always apply. That single habit protects you from an unexpected full-rate bill.
