PWC gets £5m from Enron Direct

ACCOUNTANTS PricewaterhouseCoopers will receive £5m in fees for the administration of Enron Direct alone, a small subsidiary of the Enron empire. It has been appointed administrator for the entire US energy group and total fees are expected to amount to about £100m.

Enron collapsed with $30bn (£21bn) of debts, and insolvency experts believe the administration will be one of the most profitable ever recorded. Enron Direct is one of the simplest of its parent's offshoots and the business was sold within days of PwC's appointment.

The firm moved into the company on 29 November and the sale of its electricity and gas operations was arranged by 4 December. Fees of £302,000 have already been paid to lawyers and the £5m charge for overseeing the company will be shared among PwC and its various advisers.

Creditors of Enron Direct are owed up to £170m and could receive half to three-quarters of their money back, following the sale of the business to Centrica for £95.2m. Enron Direct sold energy to businesses around the country, mainly through commission agents.