The former director of collapsed energy supplier Extra Energy Supply Ltd, has received a six-year director ban.
The Birmingham-based firm, which served approximately 130,000 households and businesses, went into administration in December 2018, amid an ongoing investigation by energy regulator Ofgem for alleged regulatory breaches.
Ofgem expressed worry over customers facing unexpectedly large bills, with indications that both quarterly and final bills were not issued as evidence suggested and customer complaints were not promptly addressed.
Moreover, Extra Energy Supply Ltd failed to meet its £28.5 million obligations to Ofgem’s Renewables Obligation and Feed-in Tariff schemes.
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.”
