The present disclosure provides methods and systems for automatically controlling power supply from an electrical power supply system to a user location based on payment status. The method performed by a central control unit includes determining a payment status of the electrical power supply system at the user location. The payment status is determined based at least on a time credit associated with the electrical power supply system. The method further includes facilitating control of the power supply from the electrical power supply system to the user location based on determining the time credit. The power supply to the user location from the electrical power supply system is uninterrupted, if the time credit is greater than a predefined threshold value. The power supply to the user location from the electrical power supply system is disconnected, if the time credit is less than the predefined threshold value.