RE: ORR Investigate EWS Railways for Abuse of Dominance

Paul - you guys are tough. Let's see what kind of reaction they get from EWS.

Thanks,

George

-----Original Message-----
From: Dawson, Paul
Sent: Friday, May 11, 2001 1:05 PM
To: Kearney, Tom; Staley, Stuart; Mcclellan, George; Rizvi, Riaz; Quick,
Robert; Evans, Mark; Morrison, Andrew; Schroeder, Mark; Grant, Fiona; Gentle,
Jackie; Lewis, Richard; Shapiro, Richard
Subject: ORR Investigate EWS Railways for Abuse of Dominance

Following our complaint to ORR about abuse of dominance by EWS Railways, they
have formally launched a Competition Act investigation. They have asked EWS
to provide copies of all correspondence (including e-mails, records of
telephone conversations etc) relating to their dealings with a range of
counterparties. (Failure to provide this information is a criminal
offence.) This information will support their investigation into two
elements of our complaint, namely that EWS has effectively refused to deal
with Enron Coal Services and that they have sought to foreclose the market to
us by discriminatory pricing. ORR is also currently discussing two other
allegations with other relevant competition authorities:

with the European Commission - the impact of unduly long term contracts with
some generators that have foreclosed the market to ECSL; and
wth the US Department of Justice - EWS's attempts to unfairly influence GM's
pricing of locomotives to EWS competitors.

ORR may launch a further investigation into these two allegations once the
outcome of their jurisdictional discussions is clear. At this stage, the
investigation is still confidential and ORR see no need for further publicity
at the current time.

Further details are in the attached fax.

Paul

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