March 12, 2026 — London Ofgem, the UK energy regulator, granted an electricity supply licence to Tesla Energy Ventures Limited, a subsidiary of Tesla Inc., enabling the company to supply electricity to homes and businesses across England, Scotland and Wales. The licence took effect on the evening of March 11 following a seven-month application process that began in July 2025.
Tesla granted electricity supply license in Great Britain (England, Scotland, Wales)[1], as first reported by The Guardian, marks the electric vehicle maker’s entry into the competitive UK retail energy market alongside providers like Octopus Energy and British Gas. The approval was issued by the Gas and Electricity Markets Authority under the Electricity Act 1989, according to City A.M..
Licence Details and Requirements
The licence authorizes Tesla Energy Ventures, a Manchester-based entity led by Andrew Payne in Europe, to deliver power nationwide but does not permit dual-fuel contracts, limiting it to electricity supply for customers with separate gas tariffs. Ofgem stated that Tesla will adhere to standard conditions on consumer protection, fair treatment, financial responsibility, billing transparency and operational capability, with ongoing monitoring and potential enforcement including fines.
Tesla will follow the same standards, monitoring, and enforcement as other licensed providers, the regulator stated. This comprises consumer protection, market norms, and consequences for violations.
Tesla’s Expansion Plans
Tesla granted electricity supply license in Great Britain (England, Scotland, Wales) aligns with its energy business growth, mirroring Tesla Electric in Texas, launched in 2022. There, customers power homes, charge EVs cheaply and sell surplus energy from Powerwall batteries back to the grid via virtual power plants. In the UK, Tesla already partners with Octopus Energy for Powerwall virtual power plants and sells EVs, Powerwalls, solar tech and chargers, building a potential customer base despite a 37% drop in EV sales to 2,422 units in February.
Market Context and Expert Views
The UK energy sector features squeezed margins and innovative tariffs from established suppliers. Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted:
Although its EV sales have dipped sharply this year, Tesla still boasts significant car ownership in the UK and has sold thousands of home storage batteries here. This could mean Tesla Electric has access to a willing customer base.
Adam Bell, former energy policy head, added:
Tesla is entering a heavily regulated market… Even with access to an ecosystem of Tesla EV and Powerwall owners, it will find making headway challenging.
Tesla granted electricity supply license in Great Britain (England, Scotland, Wales) was confirmed across financial outlets including Yahoo Finance and TipRanks, with discussions on X highlighting the development, such as a post from @ticker_pulse.
Background
Ofgem published a notice of Tesla Energy Ventures’ application in July 2025 at ofgem.gov.uk. Tesla granted electricity supply license in Great Britain (England, Scotland, Wales) expands its grid services, solar and battery storage offerings amid softening natural gas prices.