Fax (02) 9853 6000

Monday, 2 April 2001

Dear Mr Powis,

Re: EWON 9588

Thank you for your letter of 6 March confirming my registered letter(s) dated 22 February 2001.

I write in reference to a letter by Mr. G. Walker, Customer Care Manager, Commercial Services, dated 19 February 2001.

Firstly I wish to raise concerns about the first paragraph. Mr. Walker states that Integral sought my cooperation in allowing a Loss Assessor to visit the premises. However, the person referred, who’s credentials I checked, is not in fact a registered Loss Assessor. As such I rejected the use of a person who had limited technical expertise and certainly was not a registered Loss Assessor. The discussions I had with Mr. Walker indicate that the person was to assess the equipment for damage and cause of the damage, not loss assessment. As such, I find the paragraph misleading and deceptive.

Mr. Walker than states I escalated the matter to EWON of my own volition. I have to ask why in a telephone conversation with Mr. Draper on Friday 2 February he stated three times, that there was no ombudsman and no alternative arbitrator Integral could use to resolve or remedy this complaint.

I discovered EWON in my Sydney Water Bill, on 7 February and noticed the word Energy. I find this paragraph an attempt to limit the liability. Especially in light of the misinformation provided to me by your General Manager of Customer Care.

It appears from the records I have from EWON, that Integral has taken a very slow approach to "fully cooperating" with EWON. It also appears EWON is not as independent as EWON claims. I am aware that Integral pays fees to EWON for services provided to complainants. As such it is in the interest of EWON and Integral to mitigate the length and cost of such investigations.

I note that Mr. Walker also stated that EWON had arranged for an assessor to visit the premises on 19 March. I was unaware that Dr. Walsh was an assessor. I understand from his credentials his role was to determine causation.

On Friday at 3 PM when I spoke with Mr. Draper, he stated to me that the engineer "Brian" had been met with and the matter of my claim discussed and the admission was that he touched nothing and did not at any time interrupt the power to the premises. At 9 PM that same night when I spoke with Mr. Draper, I was told that "Brian" had been on a rostered day off and was not able to be contacted and that the matter would be discussed with him the following week.

I note that Mr. Walker states in his last paragraph that no liability is admitted or implied and therefore Integral felt it was inappropriate to consider making any offer as I had requested. I’m pleased to see that a truth has slipped in and that I personally requested an offer of settlement and this letter clearly shows I had attempted to open the field for any reasonable offer.

Mr. Draper stated in both conversations on 2 February that I should take any and all steps necessary to mitigate my losses. I asked him specifically if this meant buying new equipment, appointing field engineering staff or sitting back and praying. I specially stated that I could appoint stand by field engineers on a 24 hour roster at a rate of $33 per hour. Mr. Draper stated if that was what I felt was the best solution then I should carry out that action.

On 5 February we attempted to bill you for equipment we were prepared to purchase. You declined the offer to settle on this equipment.

As such we have billed you for the first two weeks, and Integral has failed to meet those commercial obligations. As such, I consider Integral Energy to be a Bad Credit Risk and have reported the outstanding accounts to Credit Referral Agencies as I am entitled.

Between 2 February 2001 and 20 March 2001 I have extended multiple opportunities to Integral to settle or come to an agreement with EWON to settle this claim. Even after the report from Dr. Walsh stating misadventure and negligence, which in turn appoints Causation and Liability at Integral, you have refused to attempt to negotiate or settle the matter.

You will be aware that we refused to extend any further credit to Integral Energy Australia on the basis that the outstanding liabilities were great. You are also aware that I accept that a Loss Assessor appointed by you attend and review the necessary losses associated with returning all facilities back to their insurable pre 1 February status. However you refused to make a good will gesture of settling my request of $1584 in costs for my time to supervise said Loss Assessor in line with my normal commercial activities.

I am unable to continue endlessly entertaining your requests without you showing good will in the process. To date Integral has shown no good will and in fact has done everything possible to delay and deceive the investigation and settlement process. A show of good will by Integral would go a long way at this time.

At 2 PM on 29 march 2001, I put in place a web site and wrote to EWON advising them of the web site. No one else was given the web address and as it’s private name space, it is not able to be found in search engines or other places.

The following morning I was given a copy of documents from your Solicitors with regards to the web site. We need not go into the matter of the documents at this time. However I do raise the question of why this web site attracted less than 16 hours of time needed to draft a letter and send it by courier, yet in more than two months, Integral was unable to assess it’s own liability.

As you can see, I was very careful in the deployment of the web site as the address was provided but to one organisation. EWON was notified of the web address, and only EWON has that web address.

I therefore question the independence of EWON in it’s collusion of passing the web address provided for their own information, to you, without seeking my consent first.

Can you explain to me, why a victim who openly talks about such a matter is being harassed by your company even further, and with such speed, that it makes Integral’s denial of liability look farcical?

I look forward to your response on these matters.

In relation to the EWON report released and dated 29 March 2001, liability and causation has been laid against Integral Energy Australia. I now formally notify you of a number of things. I note that Mr. Walker says that Integral will abide by the determination of EWON and as such that must mean you now accept liability for causation of the damages.

1. I seek full payment of all Stand-by Rates and costs associated with network engineering, fault reporting, fault rectification between 2 February and the date at which time all resources are replaced in line with the recommendation by Dr. Walsh, whom you stated you will support his recommendation and decisions.
2. I seek full replacement in line with Dr. Walsh’s report of all electrical equipment in the premises without any further or additional delay.
3. I seek full costs of labour for the rebuilding, loading of data and software, and redeployment of all equipment concerned, estimated at a cost of $384,000.
4. I seek a full indemnity against future damages against any equipment that remains in place as at the end of the settlement.
5. I have been instructed to assess the probably loss of income, sales and good will caused by the delay in rectification of this matter. I seek full settlement of these losses.

I have been instructed that upon failure to negotiate the fifth offer of an immediate settlement by 4 PM Wednesday 4 March 2001, to commence proceedings for the above damages without further notice.

I have further been instructed to seek $1,500,000 in punitive and exemplary damages in addition to the compensation of liquidated damages listed above.