March 12, 2026 — London Ofgem granted Tesla Energy Ventures Limited, a subsidiary of Tesla, an electricity supply licence, enabling the company to supply power to households and businesses across England, Scotland and Wales. This development, reported as Tesla granted electricity supply license in Great Britain, follows a regulatory review that began with an application in July 2025.
The licence took effect immediately, allowing Tesla to enter the competitive UK retail energy market. According to Investing.com, Ofgem’s assessment spanned from July 2025 to March 2026. The Financial Times detailed a seven-month process, confirming the approval for electricity supply but excluding gas, meaning Tesla cannot offer dual fuel contracts to households.
Regulatory Approval and Scope
Ofgem emphasized consumer protections in its statement:
“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.”
Tesla Energy Ventures, registered in Manchester, already holds a UK electricity generation licence since 2020 for its Megapack battery system. The new licence positions Tesla granted electricity supply license in Great Britain to replicate its Texas Electric model, offering low-cost sustainable electricity for homes, electric vehicles and communities via virtual power plants. In the UK, such services would partner with providers like Octopus Energy.
Business Context
The approval boosts Tesla’s energy division, which sells products like Powerwalls and solar panels. Tesla has sold over 250,000 EVs in Britain, though recent sales dipped amid competition. Reports from Yahoo Finance and This is Money highlight the nationwide expansion potential, competing with British Gas and Octopus Energy.
Criticisms and Reactions
Critics questioned the licence amid Elon Musk’s political activities. Liberal Democrat leader Ed Davey stated:
“Elon Musk is a threat to our national security and clearly not a fit person to operate in our energy industry.”
Best for Britain CEO Naomi Smith called Musk a “dangerous and malign influence, who belongs nowhere near our critical infrastructure.” Tesla did not respond to comment requests.
On X, discussion spread rapidly after March 12, with posts celebrating market competition and others criticizing the approval. A post by @Heccles94 garnered over 5,800 engagements, sparking fact-checks on Ofgem’s standard process.
Tesla granted electricity supply license in Great Britain underscores the company’s push into new energy markets, as confirmed across multiple outlets. Ofgem’s application notice from July 2025 provides early context, though no public grant notice was immediately indexed.