David Hunter, Energy Consultant for M&C Energy Group, believes that market dominance by the big six suppliers makes it impossible for new entrants to compete successfully in the lucrative energy market. Mr Hunter said: "Never has there been such a need for competition as energy prices soar, yet we see choice being stifled because current rules makes it virtually impossible for smaller energy companies to flourish."

The future for the 40,000 businesses, which until today were supplied by E4B, is now in the hands of OFGEM, the industry regulator. E4B's licence will be revoked from midnight on Friday 24th October and OFGEM has already sounded out market participants to bid for being appointed the SOLR (Supplier Of Last Resort).

Mr Hunter said: "It is likely that no supplier will bid for the business, so OFGEM will use license powers to appoint a SOLR - one of the big six suppliers.

"The sad fact is that the 40,000 businesses will end up paying more, as OFGEM will be solely focused on arranging a supplier, whatever the cost. The businesses will automatically be signed up to a supplier and will be unable to move to an alternative supplier for a period of time, realistically at least one calendar month. The cost of paying default rates until they move will be so high that many will be forced to stick with the SOLR, as only they would be able to backdate a contract - no doubt with full margin built in.

"We would call upon OFGEM to review the rules which gives the SOLR such an impressive advantage. Additionally, the Government should urgently consider what they could do to support competition as E4B may not be the last of the smaller energy suppliers to hit the wall. In a market that is delivering such huge profits for the dominant six suppliers, new entrants should be flooding in and flourishing, rather than going bust."