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October 23, 2008

Electricity4Business collapse, thousands of businesses face higher energy bills

Milton Keynes based energy supplier Electricity4Business (E4B) has been placed in adminstration with the appointment of PWC as administrator. E4B has around 160 staff and hopes are that PWC will find a quick buyer to save the company going under altogether.

From a customer viewpoint British Gas has been appointed by OFGEM as the replacement supplier to all E4B energy customers from the 24th October.

Under the terms of their appointment British Gas do not need to honour the existing E4B contracts in place and customers are free to shop around for a new supplier without any penalty, the best place to start such a hunt is www.billscutter.com, a leading independent energy broker specialising in commercial energy contracts.

It is slightly ironic that as recent as 8th October E4B had issued a press statement which read:
With the current economic pressures facing businesses, Mr Paul emphasised that it is paramount that SMEs find out their contract renewal date with their current supplier, hand in a notice of termination in plenty of time and then shop around for the best price.

E4B's Graham Paul made this announcement after the final 2 of the 6 big suppliers, npower and Scottish Power confirmed their price increases on August 29th. Mr Paul also further advised businesses that although these price increases relate to the domestic market, they have a knock-on effect upon commercial electricity prices as well.

These price rises come after independent research commissioned by E4B earlier in the year found that 20% of SME businesses are currently in fuel poverty, with another 40% fast approaching the threshold. This figure is destined to rise as more businesses are plunged in to fuel poverty following these recent price hikes.

What happens next?

British Gas Business will contact you over the next few days to discuss contract options, before making any decisions though we would recommend discussing all your options with www.billscutter.com

You should take a meter reading so that your account with E4B can be finalised to an accurate read. This information should be provided to the administrators at E4B as soon as possible

With the demise of E4B it is likely that E4B will receive calls from many parties purporting to act in their interests, Energylinx would encourage customers to be extremely wary unless the call eminates from either British Gas or www.billscutter.com

In keeping with the regulations applied by Ofgem in such circumstances, your supply will continue on the basis of a deemed contract. British Gas Business will of course be able to set you up on a competitive contract once they have contacted you however you need to be aware that other options exist which might well be more competitive.

Questions about your contract if you decide to stay with British Gas
When will I get my first bill?

British Gas will endeavour to get your first British Gas Business bill out to you in the early part of December.

How will my E4B account be closed down and when does my account start with British Gas Business?
E4B will bill you for the period in which you were supplied by them up until 23rd October 2008. They will open your account on the read you used to close your E4B account.

Please contact British Gas Business with your meter reading and your site details as soon as possible. You can do this by emailing: e4b@britishgasbusiness.co.uk

What will happen with my meter reads?
British Gas Business has your previous read history from your previous energy supplier and therefore will be able to estimate your read up until the date of your first bill.

What happens if I pay VAT at 5%?
Please email British Gas Business detailing your VAT rate and your site details on e4b@britishgasbusiness.co.uk and they will send you a VAT declaration form.

Posted by energylinx at October 23, 2008 04:07 PM Technorati: