A former director of the failed energy firm Extra Energy Supply, which was under investigation by Ofgem when it collapsed in 2018, has been banned from running a business for six years.
The Insolvency Service said 48-year-old Mordechay Maurice Ben-Moshe had breached his duty as a director of the company by failing to ensure its compliance with regulations.
At the time of its failure, the supplier had 130,000 customers and owed £28.5 million to the Renewables Obligation and Feed-in Tariff schemes.
Ofgem launched its investigation due to concerns that some customers were being surprised with huge bills, quarterly and final bills were not being issued and complaints were not being handled in a timely manner.
Extra Energy went into administration before Ofgem’s investigation could be completed, but working with the regulator, the Insolvency Agency subsequently launched its own investigation into the company.
The Insolvency Service launched disqualification proceedings against Ben-Moshe in December 2021 and in November 2022 a trial was set for November 2023. However, shortly beforehand Ben-Moshe offered a disqualification undertaking, which is equivalent to a disqualification order but does not involve court proceedings.
The secretary of state for business and trade Kemi Badenoch accepted the undertaking and the ban began on 15 November.
Elizabeth Pigney, chief investigator for the Insolvency Service, said: “Mordechay Ben-Moshe’s disregard for energy market rules and regulations caused distress to customers who were left with bills they couldn’t afford to pay.
“Some were left without answers due to a complaints handling service that wasn’t fit for purpose, which only added to their stress.
“This is not acceptable behaviour for any company director and as a result he cannot be involved in the promotion, formation or management of a company in the UK for six years.”
Ofgem regulatory director Cathryn Scott said: “Protecting consumers is our top priority, and when concerns were raised about Extra Energy Supply’s treatment of customers, Ofgem investigated, and found strong evidence that people were being surprised with huge energy bills and their complaints were not being handled to an acceptable standard.
“Ofgem has supported the Insolvency Service to bar this director from the industry, which sends a strong message that this kind of behaviour will not be tolerated.”