SME electricity provider enters administration

An electricity provider that supplied power to 40,000 small firms has gone into administration.

According to energy regulator Ofgem, Milton Keynes-based Electricity 4 Business (E4B) was unable to find a buyer and existing customers will be automatically transferred to another supplier.

The new provider, which will be chosen by Ofgem after a tendering process, will be able to alter existing tariffs but customers will also be free to switch to another supplier.

E4B had aimed to provide cheaper electricity to small businesses spending less than £100,000 a year on electricity. The company has so far laid off 100 of its 140 staff.

"It is disappointing that E4B is gone," said a spokesman for the Federation of Small Businesses.

"This will leave thousands of small businesses looking for new deals on their energy in an extremely volatile market. We would urge Consumer Focus to get involved immediately to ensure new deals offered to small businesses are fair."