State-run National Power Corporation (NPC) was slapped with P100,000 fines for violating a ruling of the Energy Regulatory Commission (ERC) mandating it to grant P0.80 per kilowatt hour (kWh) discount to big-ticket customer Cathay Pacific Steel Corporation.

The rate discount should have been Capasco’s direct benefit from the Special Program to Enhance Electricity Demand (SPEED), a scheme incentivizing large users of electricity to expand their consumption.

“NPC is hereby declared to have committed a violation for its continued failure to comply with the directives of the Commission…accordingly it is hereby directed to pay the fine of P100,000,” the regulator emphasized in the ruling.

The ERC said NPC violated its ruling when it failed to implement the rate discount for Capasco, given that its motion for reconsideration has already been denied by the Commission.

“NPC is hereby reprimanded for its failure to implement the Commission’s directive in its Order…and is hereby warned that commission of a similar offense in the future shall be dealt with more severely,” the regulatory body reiterated.

The ERC noted that in its Order dated May 18, 2009, it directed NPC anew to comply with the directive. This is relative to its earlier ruling on December 19, 2006 ordering NPC “to submit a scheme on how to effect the refund.”