Boss of collapsed energy supplier faces six-year ban

A director of a Birmingham energy supplier has been banned for six years after failing to ensure compliance with guidelines.

Mordechay Maurice Ben-Moshe, aged 48, served as a director for Extra Energy Supply, a company that catered to approximately 130,000 residential and business customers until its administration in December 2018.

During its collapse, Extra Energy Supply was under investigation by the energy regulator Ofgem for suspected violations of regulations.

Ofgem’s concerns included instances where customers faced unexpected substantial bills, and there was evidence indicating lapses in issuing quarterly and final bills, along with delays in addressing customer complaints.

In addition, the company had outstanding debts of £28.5m to Ofgem’s Renewables Obligation and Feed-in Tariff schemes, designed to promote the generation and utilisation of renewable electricity.

Although the Extra Energy Supply went into administration before Ofgem could conclude its investigation, a subsequent inquiry by the Insolvency Service conducted in collaboration with Ofgem, revealed that Ben-Moshe had neglected his directorial responsibilities by failing to ensure compliance with regulations.

In December 2021, the Insolvency Service initiated disqualification proceedings against Ben-Moshe, setting a trial date for November 2023 in November 2022.

Before the trial, Ben-Moshe offered a disqualification undertaking, equivalent to a disqualification order but without involving 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 complaint 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.”

The Secretary of State for Business and Trade approved a disqualification undertaking from Ben-Moshe, initiating his 6-year ban on November 15, 2023.

This prohibits his engagement in the promotion, establishment, or administration of a company without the court’s permission.