In 2016, IPART audits found Demand Manager had invalidly created ESCs for projects implemented by Envirolife Pty Ltd (trading as Powervault). At issue was the $5 co-payment requirement for lighting upgrades in NSW.
Demand Manager accepted the findings of the audit, forfeited the ESCs, paid a $20,000 fine and amended its procedures to better identify such breaches.
Soon after, Demand Manager commenced legal proceedings against Powervault (now in administration) and the three directors, Mr Benjamin Cranston, Mr Daniel Flynn and Mr Jeremiah Jagodski. A confidential financial settlement was reached with Messrs Cranston and Flynn on 21 May 2021.
Over the week commencing 24 May 2021, the case against the fourth defendant, Jeremiah Jagodski, was heard by His Honour Judge C J G Robison in the NSW District Court.
The Director of Demand Manager, Mr Jeff Bye, and employee, Mr Thumpi Bhaskar, were subjected to three days of cross examination on over 3,000 pages of evidence.
Mr Jagodski was subjected to cross examination for approximately 15 minutes at the conclusion of the fourth day of proceedings. During this cross-examination, Mr Jagodski was repeatedly warned by the Judge about the penalties for perjury and the need to speak the truth.
A confidential financial settlement was reached with Mr Jagodzki on the morning of the fifth day.
Whilst Demand Manager is pleased to bring the matter to a conclusion, it is unfortunate that the defendant’s case was not further explored in the court and that Demand Manager did not receive written vindication that the defendant’s actions led to the compliance actions.
Demand Manager is thankful to its legal counsel, Mr Stefan Briggs and Ms Crina Ramsay of SMB Law and Barrister, Mr Matt Davis of Selborne Chambers.