New Delhi: In a major relief for consumers burdened by inflated utility bills, the Delhi government has announced that no penalty will be charged on pending water and electricity bills if they are paid by January 31, 2026. Those who clear their dues between February 1 and March 31, 2026, will receive a 70% rebate on the penalty amount.
After this period, defaulters will have to pay both the outstanding bill and the full penalty. Chief Minister Rekha Gupta stated that more than 1.6 million consumers will benefit from the Late Payment Surcharge (LPSC) Waiver Scheme, under which a total of ₹11,000 crore in penalties will be waived. The scheme was implemented on October 14.
For years, Delhi residents have been struggling with inflated water bills, especially during the COVID-19 pandemic, when thousands of consumers received incorrect bills. The Delhi Jal Board (DJB) reportedly ignored many of these complaints, resulting in significant financial losses for the department.
The previous Arvind Kejriwal government had announced a bill waiver scheme in 2023, but it was never implemented. During the recent assembly elections, the issue became a major campaign topic, with several parties promising a solution once in power.
Last month, in a meeting chaired by Water Minister Parvesh Verma, the DJB approved the LPSC Waiver Scheme, and on Tuesday, Chief Minister Rekha Gupta officially launched it at the Delhi Secretariat.
According to government data, Delhi consumers owe a total of ₹87,589 crore, of which ₹80,463 crore (91%) is due to accumulated penalties. Domestic consumers alone owe ₹16,068 crore, with ₹11,000 crore of that being penalties now waived off. Consumers will be allowed to pay in a lump sum or in installments within the specified period.
Previously, a compound interest of 5% per billing cycle was charged for late payments, but this has now been reduced to 2%. Similarly, the penalty for illegal water or sewer connections has been slashed — instead of ₹26,000, domestic consumers will pay only ₹1,000 if they regularize their connections by January 31, 2026. For non-domestic users, the fee has been reduced from ₹61,000 to ₹5,000.
The Chief Minister noted that many people were using unauthorized connections due to lack of awareness or high regularization charges. They are now being given an opportunity to legalize their connections under this one-time waiver. However, the concession applies only to penalty amounts — regular connection and infrastructure charges must still be paid as per rules. After the scheme’s deadline, unauthorized connections will be disconnected.
This is being termed as the final LPSC waiver and regularization scheme.
Regional Revenue Offices Reorganized
The Chief Minister added that during the previous administration, technical glitches in the revenue management system software had disrupted billing and new connections. The system has now been fully restored, and new connections are being issued. The government has also restructured regional revenue offices, assigning one office for every two assembly constituencies.
Water Minister Parvesh Verma said, “Although this waiver scheme will cause some financial loss to the Jal Board, it has been approved keeping in mind the welfare of the people of Delhi.”
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