An Oxford-based electricity and gas sales business sold off after the collapse of US energy giant Enron is set to expand under its new owner.

Patricia Hewitt, the Secretary of State for Trade and Industry, has decided not to refer British Gas's purchase of Enron Direct to the Competition Commission.

British Gas spokesman Neville Bartrop said: "We have already started recruiting extra staff in Oxford.

"We're delighted that clearance has been given by the Government to the acquisition.

"The opportunity to acquire this business came at short notice and so we're very pleased, as it fitted very neatly into our plans to expand."

He said the number of new jobs, in sales and customer service, would depend on the rate of growth of the business, but would probably amount to "a few dozen".

Enron Direct, based at King Charles House, in Park End Street, followed its US parent into administration in December last year.

It was sold to British Gas by administrators PricewaterhouseCoopers for £96.4m. All 225 Oxford workers transferred to British Gas.

Mr Bartrop said they brought the company valuable experience in the commercial electricity market.

British Gas only entered the electricity market after it was deregulated in 1999 and last autumn became the biggest supplier to domestic customers.

But, as yet, it has relatively few commercial customers and is keen to gain new accounts with small and medium-sized companies.

The acquisition of Enron Direct almost doubled its number of commercial electricity customers at a stroke to 330,000.