Power firm goes into administration

Small business electricity supplier Electricity 4 Business (E4B) went into administration in a move affecting about 40,000 customer firms.

Administrator PricewaterhouseCoopers was unable to find a buyer for E4B, which is based in Milton Keynes, energy regulator Ofgem said.

But the watchdog said that E4B's customers would not be disconnected and would be transferred to another supplier as part of a process kicked off under the Utilities Act.

PwC confirmed that 100 of E4B's 140-strong workforce were made redundant.

E4B fell into trouble as a result of soaring wholesale energy prices, said administrators.

Stuart Maddison, joint administrator and partner at PricewaterhouseCoopers in the Midlands, said: "The decision by the directors of E4B to place the company into administration comes as a result of volatility in the energy market.

"We will be working closely with Ofgem to ensure an orderly wind-down of the company's activities and would like to reassure E4B's customers that the administration will not affect their supply of electricity."

Ofgem said it would use its powers to launch a supplier of last resort process for E4B's customers.

Energy firms will be invited to bid and one will be appointed by Ofgem, but customers will not be tied into deals with the new supplier and will be free to switch.