One politician called for an investigation into ‘whether we have a scandal on the use of public money here’
Former CES employee Jack Cromwell outside company headquarters(Image: ITV)
Former employees of a failed energy business have launched legal action after its collapse led to nearly 300 redundancies. Swansea-based Consumer Energy Solutions (CES) made massive profits before its controversial entry into administration.
The administration was confirmed last month, just 28 days into a 45-day consultation period about the future of the business. More than 220 former employees are now challenging the way the redundancy process was handled, arguing that the consultation was not conducted in accordance with the law, ITV reports.
CES, which operated under the UK Government’s ECO4 scheme to upgrade homes’ energy efficiency, reported profits exceeding £35m in its last published accounts (2024) – but stated it was no longer viable to continue trading as the scheme is scheduled to end in 2026. Make sure you never miss Wales’ biggest updates by getting our daily newsletter.
The business employed 295 people in Swansea and the Treorchy area of Rhondda Cynon Taf.
Jack Cromwell joined CES as a site manager coordinator in September only to be made redundant five months later. “It’s had a massive impact on me,” he told S4C programme Y Byd ar Bedwar.
“I’ve got bills to pay, rent to pay, council tax. Unless I find alternative employment soon, I don’t know how I’m going to support that in the long run.”
Mr Cromwell, who has applied for more than 40 positions since losing his job, is among those pursuing legal action, according to ITV.
“A lot of us are angry because we feel our concerns haven’t been taken into account by the employers. I personally feel that the wool has been pulled over our eyes. I was sold the dream coming here.
“We’ve been left with no job, no pay, no sort of idea on how any of us are going to support ourselves in the future. This shouldn’t be happening,” he said.
The profit from 2024 has intensified questions about oversight of the ECO4 scheme. Plaid Cymru MP Liz Saville-Roberts (Dwyfor Meirionnydd) has called for a National Audit investigation into the sector.
“I have every sympathy with people that have lost their jobs at very short notice,” she said. “This is an appalling situation.
“We need a National Audit investigation into the way these companies conducted themselves, the level of profits they made, the work practices they promoted and carried out, and whether we have a scandal on the use of public money here.”
The company is part of City Energy Group, which blamed CES’ collapse on the “run-down” of ECO4, an initiative aimed at improving energy efficiency in low-income and vulnerable households.
The group said: “The conclusion of the ECO4 scheme created significant headwinds for the CES arm of our business which generated significant revenues for this specific subsidiary.
“Despite exhaustive efforts to secure a solvent path forward, regrettably it was not viable to continue trading.”
KR8 Advisory Limited, the appointed administrator, said it is working closely with the Redundancy Payments Service to ensure employees receive statutory entitlements, including redundancy and notice pay.
A spokesperson for the Department for Energy Security and Net Zero said the UK Government had “inherited a flawed system of oversight and regulation” and is working with relevant authorities to address the situation and support affected workers.
The department previously said ECO4 was not “delivering value for money”, adding: “We are instead investing an additional £1.5billion into our Warm Homes Plan, taking it to nearly £15billion – the biggest ever public investment to upgrade homes and tackle fuel poverty.”
Y Byd ar Bedwar: Cwmni Mewn Creisis is on S4C, S4C Clic and BBC iPlayer, 16 February. English subtitles are available.
