THIRUVANANTHAPURAM: With arrears mounting despite repeated recovery efforts and rising legal costs, the Kerala State Electricity Board Ltd (KSEBL) has rolled out what it calls a “final chance” for consumers to clear long-pending electricity dues through a One-Time Settlement scheme (OTS-2025).
The new One-Time Settlement (OTS-2025) scheme, running from May 1 to July 31, 2025, offers deep concessions on interest and a limited-time rebate on principal amounts.
Unlike previous schemes that needed prior regulatory approval, the latest initiative has been launched under an amended provision in the Kerala Electricity Supply Code, which allows KSEBL to implement such schemes with mere intimation to the Kerala State Electricity Regulatory Commission (KSERC).
The scheme offers:
- 100 per cent waiver on interest for arrears over 10 years old
- Interest reduced to 4 per cent for dues between 5 and 10 years
- 6 per cent interest for dues between 2 and 5 years
- 5 per cent rebate on principal if the entire amount is paid in one go
KSEBL, which collected Rs41.46 crore under its previous OTS scheme (of which Rs30.58 crore was principal), has acknowledged that the collection rate remains low and unattractive for many consumers.
At a time when the utility is borrowing heavily to meet working capital needs and deploying significant manpower and money in legal battles, officials say they can no longer afford to keep offering such settlements repeatedly.
Last chance
“This is the last chance for consumers to settle outstanding dues under favourable terms,” the Board’s resolution stated.
Notably, KSEBL has earmarked Rs2 crore to widely publicise the scheme through all media channels and mandated intensified Revenue Recovery (RR) proceedings, including strict disconnection enforcement, to push defaulters toward compliance.
The Board has also set up a dedicated team to monitor and report the scheme’s progress and authorised incentives for field staff based on performance.
In a bid to streamline the process, the utility’s IT wing will modify its Orumanet software to track collections and generate real-time reports. All final data will be submitted to KSERC after the scheme ends.
KSEBL’s decision reflects a larger concern – that frequent amnesty-like schemes may inadvertently reduce payment discipline. With this round of OTS branded as the final opportunity, the utility appears to be drawing a line under repeated leniency.
