Boss of collapsed energy supplier hit with 6-year ban
Former director of Extra Energy Supply is now banned from running a business.
Mordechay Maurice Ben-Moshe, 48, was a director of Birmingham-based Extra Energy Supply Ltd, which supplied around 130,000 household and business customers at the point it went into administration in December 2018.
At the time of its collapse, Extra Energy Supply Ltd was under investigation by energy regulator Ofgem for alleged breaches of its regulations. Ofgem was concerned some customers were being surprised with huge bills and evidence suggested that quarterly and final bills were not issued, and complaints from customers were also not being handled in a timely manner.
In addition, the firm owed £28.5m to Ofgem’s Renewables Obligation and Feed-in Tariff schemes, which incentivise the generation and use of renewable electricity. These were obligations which Extra Energy Supply Ltd failed to meet.
Extra Energy Supply Ltd went into administration before Ofgem could complete its investigation however, but the subsequent investigation by the Insolvency Service, which worked closely with Ofgem, found that Ben-Moshe breached his duty as a director of the company by failing to ensure that it complied with the regulations.
The Insolvency Service launched disqualification proceedings against Ben-Moshe in December 2021 and in November 2022 a trial was set for November 2023. Shortly prior to this Ben-Moshe offered a disqualification undertaking, which is equivalent to a disqualification order but does not involve court proceedings.
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.
Cathryn Scott, Regulatory Director for Ofgem, 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.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Ben-Moshe, and his 6-year ban began on 15 November 2023.
It prevents him from becoming involved in the promotion, formation or management of a company, without the permission of the court.
Background
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Mordechay Maurice Ben-Moshe’s date of birth is April 1975.
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Extra Energy Supply Limited (company number 08053154).
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Persons subject to a disqualification order are bound by a range of restrictions.
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Further information about Ofgem’s compliance and enforcement investigations
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