EXPOSED: Murky deals led to collapse of the small power firm of Economy Energy

Collapsed power firm Economy Energy is being published for the National Grid, The Mail on Sunday can reveal.

Lubna Khilji, 33, was embroiled in a series of disputes before the firm ceased trading last week.

In one case, National Grid claims the company owes it £ 12million for supplying smart meters.

Investigation: Boss Lubna Khilji has been involved in a web of energy firms

Two other smart metrology installation businesses, Access Install and Southern Green Marketing Deal, took Economy Energy to court in 2017 and 2018 over unpaid bills.

The company is understood to be contesting the cases.

Economy Energy, whose 235,000 customers have been made on by last year when it was hired City powerhouse KPMG to help raise £ 5million.

Khilji – Kenilworth, Warwickshire, with £ 964,000 in cash two years ago, according to Land Registry.

But The Mail on Sunday can reveal the outstanding court cases.

They also claimed that 100 per cent of the company have been backed up by its latest published accounts. However, other records on the Companies House suggest that Paul Cooke, who also owns the rival E Energy jointly with Khilji, was also a shareholder of Economy at that time.

Last night, lawyers for Cooke said Economy shares were wholly owned by Khilji when the company collapsed. Companies owned by Cooke, 50, and Khilji have been under investigation since 2016 by the regulator Ofgem for alleged collusion. They have been involved in the past few months.

Over the past year, nine energy suppliers have gone bust

On December 21, Khilji stepped down as a director of three other energy companies, all of which have been licensed to supply gas and electricity to homes.

She was replaced by Cooke. On the same day, ownership of Vavu Power, Albuquerque Energy and Santana Energy transferred from Economy Energy to E Energy.

The registered office in Coventry, where Khilji was spotted by The Mail on Sunday last week. Industry experts said these brands could be used to attract new customers.

The revelations will heap pressure on regulator.

Owners have gone away, yet the owners have gone away from any money owed to customers or in taxes. That has left a bill of about £ 100million for other suppliers.

Last night, one of the senior industry sources said Economy of Energy's dealings: "I have never seen anything like this. Economy's behavior is outrageous and completely unprecedented. How they got away with this is mind-boggling. "

Signs that Economy Energy, which was launched in 2012 by Khilji, was under strain when it was extended in November last year.

The fund-raising document, seen by The Mail on Sunday, states that losses had hit £ 5.7million for the seven months to October.

They also states that the company lost 100,000 customers in 2018. Some consumers have allegedly had their accounts repaid. Citizens Advice said it had received a large number of customer service complaints about Economy Energy.

The KPMG document, named Project Wattley, said: 'The direct debit market has proved difficult and the inherent billing issues with this customer base have been put to recent strain on the Economy Energy's profitability and resource.'

The document failed to disclose that the company owed £ 15.5 million in unpaid green taxes or Khilji's shareholding in rival E Energy. It was not enough to be sold to customers in credit. Multiple sources said the company still owed millions of pounds to customers when it went bust.

KPMG declined to comment. A source close to the gigantic accountant was not required to check it.

Smart meters order: Court documents allege that Economy failed to pay the £ 12million bill

This document is understood to be an information memorandum, which is not required to provide full disclosure to potential investors.

Halted before any investors put in money. National Grid, Access Install, and Southern Marketing Deal declined to comment on the ongoing court cases.

According to court documents for the National Grid case, Economy Energy ordered nearly 300,000 smart meters from the company in 2016 and 2017 for last year delivery.

The paperwork alleges that Economy failed to pay the £ 12million bill – despite National Grid's four letters between December 2017 and June 2018 asking for payment.

Paul and Lokna Khilji as defendants.

Gillian Guy, chief executive of Citizens Advice, said: 'Economy Energy has been failing its customers for years.

'We have seen the problems with the regulator … there are still firms operating now that require the regulator's attention.'

Ofgem launched its first probe into Economy Energy in 2016, accusing it of breaching competition

Two further investigations into Economy were launched last year into unpaid green taxes and poor customer service. The dairy led to the Economy being banned from taking on new customers.

Ofgem says it is reviewing its licensing rules for suppliers.

Khilji declined to comment. A lawyer representing Cooke said his client did not have enough time to provide a full response but stressed that the economy was collapsing.

He added that he was a member of the paramount importance to the directors, who will assist administrators and Ofgem.

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