A WORCESTER-BASED electricity retailer is hoping to plug the gap left by the demise of one of Britain's largest energy suppliers.

BizzEnergy, which has its head office on Berkeley Business Park, in Warndon, is offering instant on-line switching for businesses hit by British Energy problems.

British Energy's descent into administration is looking increasingly likely after new details of its debt burden came to light earlier this week.

Government ministers now say the prospect of the country's biggest nuclear power generator being put in the hands of administrators has increased since last week.

Sussanne Chambers, spokeswoman for BizzEnergy, said the implications of the situation for businesses in the two counties could be significant if they had not already signed contracts for future supply.

"Many businesses' electricity contracts run from October to September," said Ms Chambers.

"Those that have not arranged their contracts for the coming year will discover that a number of suppliers are not offering contracts at the moment, due to the uncertainty surrounding British Energy.

"The Government agreement with British Energy matures on Friday, September 27, and if a long-term solution cannot be reached the company may have to start insolvency procedures."

"If businesses are unable to find a new contract they will have to pay an "out of contract" price that will be significantly higher than they have been used to paying.

"Speed of action is vital for businesses that want to be assured of good-value electricity supply for the next year."

British Energy currently provides about one fifth of the UK's power but recent market conditions have meant it has been unable to sell its energy for more than it costs to make.

The price of electricity on the wholesale market has fallen 40 per cent over the past four years, mainly due to increased competition.

Last week, British Energy announced it had entered into a short-term facility agreement with the government of up to £410m of working capital to enable it to continue trading in Britain and North America.