March 12, 2026 — London Tesla Energy Ventures Limited, a subsidiary of Tesla Inc., has been granted an electricity supply licence by Ofgem, the UK energy regulator, allowing it to supply electricity to domestic and non-domestic customers across England, Scotland, and Wales. The licence became effective at 6 p.m. local time on March 11, 2026, after a seven-month review process that started in July 2025.
The approval follows Tesla’s initial electricity generation licence granted to Tesla Motors Ltd. in June 2020. It positions the company to compete in the UK retail energy market, potentially linking its offerings in electric vehicle charging, solar panels, and battery storage such as Powerwall and Megapack systems, as reported by Electrek and the Financial Times.
Licence Scope and Process
The licence covers Great Britain but excludes dual fuel contracts combining electricity and gas for households. Ofgem confirmed the decision after assessing the application on technical and regulatory merits.
“Ofgem ultimately determined the application met all statutory licensing requirements. The regulator assessed the application on its technical and regulatory merits, not on public opinion about the company’s CEO.”
— Ofgem, via Electrek
Ofgem emphasized consumer protections:
“Consumers remain firmly in control and people are free to choose whether to buy electricity from TEVL or any other supplier, and to switch or stay at any time.”
— Ofgem, quoted in Financial Times
The process drew over 8,400 public comments in August 2025, many opposing due to concerns over Elon Musk’s political activities.
Background and Context
Tesla has built energy infrastructure in the UK, including the Pillswood Megapack project near Hull in late 2022 and a 1 GWh project in Scotland signed in December 2025. Previously, it partnered with Octopus Energy for virtual power plant services using Powerwall owners. Tesla vehicle sales in the UK declined amid competition and backlash related to Musk, per The Guardian and Reuters.
Critics including Liberal Democrat leader Ed Davey and Best for Britain campaigners questioned the approval.
“Elon Musk is a threat to our national security and clearly not a fit person to operate in our energy industry.”
— Ed Davey, Financial Times
The news sparked discussion on X, including a post by @ticker_pulse stating “Tesla Granted Electricity Supply License in Great Britain Tesla has received approval from Ofgem to supply electricity to homes and businesses across England, Scotland, and Wales, marking a major step into the UK energy market” here.
Major outlets including Bloomberg and Teslarati confirmed the development based on Ofgem’s public register updates.