Almost 300 workers in South Wales have lost their jobs after their employer, an energy efficiency provider, collapsed into administration. Consumer Energy Solutions Limited, with sites in Swansea and Rhondda Cynon Taf, ceased trading with immediate effect on Friday, 9 January 2026.
Administrators Appointed as Trading Halts
The company, owned by the City Energy Group, confirmed it was undergoing a restructure before the appointment of joint administrators. James Saunders and Michael Lennon of KR8 Advisory Limited were formally appointed on 9 January 2026.
A stark notice on the firm's website informed customers and creditors that all work had stopped. The company employs 295 people, all of whom have been impacted by the sudden closure. One anonymous staff member told WalesOnline that employees were left "in turmoil" after being informed of the risk to their jobs on a Teams call just before Christmas.
Government Scheme Change Cited as Key Factor
The proposed restructure and subsequent job losses have been attributed by the group to the conclusion of the UK Government's Energy Company Obligation (ECO4) scheme. This initiative, which Consumer Energy Solutions operated, provided funding for home energy upgrades like insulation, solar panels, and heat pumps to help homeowners save money.
With the ECO4 scheme due to end this year, the company's business model was severely undermined. A spokesperson for the Department of Energy Security and Net Zero stated that the ECO and similar schemes "were not delivering value for money." The government is instead channelling an additional £1.5 billion into its Warm Homes Plan.
Consequences for Customers and Staff
The administration has immediate and serious repercussions. The company confirmed it is unable to complete any further work for customers or carry out remedial works on existing installations. Customers with ongoing issues are being directed to contact their insurance-backed guarantee providers.
For the workforce, the future is now uncertain. The joint administrators will contact employees and creditors directly to outline the next steps for processing claims. The notice stressed that the administration does not involve any other companies within the wider City Energy Group.
Creditors who believe they have a retention of title claim over goods supplied to the company are instructed to email CES@kr8.co.uk. All other parties are advised they need take no immediate action.
