Key Points
- Consumer Energy Solutions (CES), a south Wales-based energy company, entered administration on 9 January 2026, ceasing trading with immediate effect.
- Nearly 300 jobs lost, with 295 employees in Swansea and Treorchy affected, including sales advisors, project planners, and staff in heating and insulation departments.
- Joint administrators James Saunders and Michael Lennon of KR8 Advisory Limited appointed on 9 January 2026.
- Company unable to complete further work, remedial repairs, or resolve complaints for customers.
- Administration does not affect other City Energy Group companies.
- City Energy Group announced a restructure leading to the job losses.
- Collapse linked to end of UK Government-supported ECO4 energy efficiency scheme.
- Administrators to contact creditors and employees on next steps and claims processing.
- Previous customers with installations referred to insurance-backed guarantee providers.
- Staff informed on Friday that they were made redundant.
Inverted Pyramid
Consumer Energy Solutions Limited, a prominent energy firm in south Wales, has plunged into administration, abruptly halting trading and axing nearly 300 jobs across its Swansea and Treorchy operations. The collapse, announced on Friday 10 January 2026, leaves 295 employees redundant and customers without ongoing services or support. Joint administrators James Saunders and Michael Lennon of KR8 Advisory Limited were appointed on 9 January 2026, confirming the company has ceased operations with immediate effect.
What Led to Consumer Energy Solutions’ Collapse?
The sudden administration of Consumer Energy Solutions stems from ongoing financial pressures exacerbated by the conclusion of the UK Government’s ECO4 energy efficiency scheme. As reported by ITV News Wales, staff in sales, project planning, heating, and insulation departments were among those made redundant after the firm confirmed it could no longer trade. City Energy Group, the parent company, initiated a restructure that precipitated these widespread job losses, as noted in BBC coverage.
A notice on the CES website, as detailed by ITV News, explicitly states: “Please note that James Saunders and Michael Lennon of KR8 Advisory Limited were appointed as Joint Administrators of Consumer Energy Solutions Limited on 9 January 2026, the Company has ceased trading with immediate effect.” This move isolates CES from other entities within City Energy Group, ensuring no broader group impact.
WalesOnline reporters highlighted that the firm, a major Welsh employer, faced challenges post-ECO4, a programme aiding homeowners with insulation, solar panels, and heat upgrades set to end this year. Despite prior indications of restructuring due to the scheme’s wind-down, the full cessation caught many off guard.
How Many Jobs Have Been Lost and Who Is Affected?
Precisely 295 positions have been eliminated at CES’s sites in Swansea and Treorchy. As per the ITV report, these include sales advisors, project planners, and personnel from heating and insulation teams. Employees were notified on Friday of their redundancies, with administrators now tasked to support them through the process.
The Daily Express coverage echoes this, stating the jobs lost encompass key operational roles in the energy services sector. BBC News articles confirm “hundreds of jobs lost” via City Energy Group’s restructure announcement. Mirror Money’s social media post summarises “hundreds of jobs lost after an energy provider collapsed into administration,” aligning with the scale reported across outlets.
Joint administrators emphasise their role: “The Joint Administrators will be contacting creditors and employees directly to confirm the next steps and how claims will be processed. You do not need to do anything further at this stage.”
What Happens to Customers Now?
Customers face immediate disruptions, as CES cannot complete further work, remedial repairs, or address complaints. The official notice advises: “The Company is unable to complete any further work for customers.” Previous clients with completed installations experiencing issues must turn to insurance-backed guarantee providers for assistance.
ITV News specifies that no ongoing projects will proceed, leaving households and businesses reliant on prior guarantees. This mirrors broader concerns in energy sector failures, though CES is not a direct supplier under Ofgem’s standard supplier of last resort process, given its focus on installations rather than ongoing supply.
WalesOnline notes the firm’s role in ECO4 deliveries, implying unfinished energy efficiency upgrades now hang in limbo.
Who Are the Administrators and What Is Their Role?
James Saunders and Michael Lennon from KR8 Advisory Limited serve as joint administrators. Their appointment on 9 January 2026 marks the formal entry into administration, as quoted in the CES website notice relayed by multiple sources.
According to ITV reporting, administrators are responsible for supporting workers through redundancies and managing creditor communications. The notice clarifies: “It should be noted that the Administration of the Company does not involve any other companies in the City Energy Group.” This containment aims to stabilise the parent group amid the subsidiary’s failure.
Why Did This Energy Firm Fail Amid Sector Challenges?
The collapse aligns with persistent liquidity issues in challenging market conditions, though CES’s woes tie specifically to ECO4’s end. City Energy Group’s restructure announcement, as covered by BBC, directly links to the job cull. WalesOnline attributes it to the scheme’s closure, which had sustained operations in insulation and renewables.
Broader context from past energy failures, like Rebel Energy’s 2025 bust after fund mismanagement, underscores sector vulnerabilities, but CES reports no such allegations. Unlike suppliers under Ofgem’s Special Administration Regime, CES’s installation focus shifts impacts to jobs and contracts rather than supply continuity.
Express.co.uk frames it as a “major energy firm” plunge, emphasising the abrupt 300-job axe.
What Is the Broader Impact on South Wales?
South Wales loses a key employer, with 295 roles vanishing from Swansea and Treorchy communities. ITV highlights the regional blow to energy services jobs. WalesOnline dubs CES a “major Welsh employer,” amplifying local economic concerns.
No immediate ripple to City Energy Group, per administrators. However, unfinished ECO4 works could delay energy efficiency goals in Wales, affecting household bills and green transitions.
How Does This Compare to Recent Energy Sector Collapses?
CES joins a pattern of energy-related insolvencies, though distinct from supplier failures like Rebel Energy, which left 90,000 customers supplier-less after green levy issues. Batt Cables’ recent administration cited market woes for 334 job risks, paralleling CES’s liquidity strains.
Historical data shows 29 suppliers failed amid 2022 price spikes, costing £2.7bn, per ICAEW insights. CES avoids customer supply voids but mirrors job losses and contract halts.
What Support Is Available for Affected Employees?
Administrators pledge direct outreach to employees on claims and next steps. Redundancy support falls under standard UK processes, with KR8 Advisory aiding transitions.
In the energy efficiency niche, professionals might explore Renewable Energy training to pivot careers, bolstering skills in solar, insulation, and heat pumps amid ongoing green demands.
What Lies Ahead for City Energy Group?
The group remains unaffected, focusing on restructure completion. Monitoring creditor resolutions and potential asset sales will define recovery paths.
For firms navigating volatile energy markets, Leadership and Management courses equip executives to steer through administrations and restructures effectively.