Fire caused by fuse box

It is now suspected that a faulty fuse box started the blaze.

The probable cause of the fire was revealed today as demolition teams prepared to move in to begin work on taking down unsafe sections of the damaged buildings.

A senior police source said: "Initial examination has failed to reveal anything that would indicate any kind of crime.

"Examinations by our forensic teams indicate the cause of the fire is looking more and more like having started within an electrical box in the warren of corridors on the first floor level above the Gilded Balloon."

However, one of the fire officers involved in the investigation said they had not yet reached any final conclusions about how the fire may have started.

And he added: "It has been difficult to get into the site where we think it started because it is too dangerous.

"We will be working in conjunction with the demolition team and will be sifting through any material at the point where we think the fire started.

"There was a massive amount of damage and it will be weeks before we reach any conclusions." Demolition work was expected to start today on

buildings that have been left dangerously unstable by the Old Town fire.

One seven-storey building on South Bridge is understood to be in a state of near-collapse and must be taken down urgently.

Another building on the Cowgate, immediately adjacent to Wilkie House, is also being demolished because it is unstable.

The first priority for demolition experts is to take down the dangerous building in South Bridge between the Bridge Jazz Bar and the Aroma Coffee Bar, which was already shrouded in scaffolding before the fire.

Demolition experts from city-based firm Daltons will be taken up on a hydraulic platform, where they will take down the building brick by brick.

Masonry which is architecturally important will be retained, with the rest knocked into the building.

The demolition experts will be asked to retain the facade of the C-listed Victorian building.

On the Cowgate, the gable-end to the left of Wilkie House will be demolished in the same way.

Experts are keen to preserve Wilkie House, which is an A-listed building and has recently undergone a 1 million refurbishment to become the Faith pub. The building to its left is extremely unstable and by knocking down the gable end they hope to remove the risk of it collapsing on to Wilkie House.

A spokesman for Lothian and Borders Fire Brigade said they had now been taken off the scene, but would remain on standby during the demolition in case any new fires break out. He added: "The buildings earmarked for demolition are the most unstable. The one on South Bridge is seven-storeys high with tall chimney stacks. It is in extremely unstable and could collapse. It will be taken down bit by bit.

"The building next to Wilkie House in the Cowgate will also be demolished today."

This morning, police would only officially say the investigation was still ongoing and refused to confirm the suggestion the fire started in an electrical box.

Big names from the world of comedy have lined up for a benefit concert to help the famous Gilded Balloon club bounce back from the Old Town blaze.

Steve Coogan, Eddie Izzard, Phil Kay and Meera Syal are among those planning to take part in the gig at London’s Piccadilly Theatre on January 19.

The benefit evening was supposed to be a surprise for the club’s director, Karen Koren, but the secret escaped and Ms Koren said she was "gobsmacked" by the news.

She added: "I can hardly believe that all these people have come forward to do something for me."