Tesla seeks UK authorization for electricity distribution
Tesla Expands Into UK Retail Electricity Market
Tesla Energy Ventures Limited, the Manchester-based energy arm of the tech giant, has applied for an electricity supply license from the UK's energy regulator, Ofgem. If approved, Tesla would be authorized to sell electricity directly to homes and businesses across England, Scotland, and Wales, marking the company's first international expansion in this sector.
The application was filed on July 25, 2025, with a public consultation window that closed on August 22, 2025. Ofgem’s assessment of Tesla’s application could take up to nine months, suggesting a possible licence approval and service start date around mid to late 2026.
Tesla's entry into the British electricity market comes amid declining EV sales in Europe, as the company seeks energy supply as a growth platform. The licensing process can take up to nine months, but some cases may move faster. If approved, Tesla Electric could provide electricity to homes and commercial premises across England, Scotland, and Wales as early as next year.
The application covers electricity supply only, not gas, meaning Tesla’s offer would be electricity-only rather than dual-fuel, which remains the standard bundle for most UK households. The company's focus will likely be on integrating Tesla products such as electric vehicles and Powerwall home batteries into a seamless energy supply ecosystem.
Tesla Electric has been operating in Texas since late 2022, where it offers competitive charging rates for Tesla vehicles and operates a Virtual Power Plant (VPP) program. The VPP program enables Tesla Electric to stabilize renewable energy supply by pooling small-scale energy storage into a larger, coordinated network. In Texas, Powerwall owners are paid for feeding stored electricity back to the grid during peak demand.
In 2023, Tesla posted a job listing for a Head of Operations, Tesla Electric - Retail Energy, responsible for obtaining UK licenses and preparing for a commercial launch. However, the job listing did not specify if the VPP program would be extended to the UK or provide details about the charging rates or other services Tesla Electric might offer in the UK.
If Tesla's application is approved, the company would gain the ability to set tariffs, bill customers, and participate independently in balancing and wholesale electricity markets within Great Britain. This would enable Tesla to offer retail electricity services alongside established suppliers like British Gas, Octopus Energy, and OVO.
In summary, Tesla's application for an electricity supply license in Great Britain marks a significant step in the company's international expansion. If approved, Tesla would be authorized to sell electricity directly to homes and businesses across England, Scotland, and Wales, potentially focusing on integrating Tesla products such as electric vehicles and Powerwall home batteries into a seamless energy supply ecosystem.
| Aspect | Details | |-------------------------------------|-------------------------------------------------------| | Applicant | Tesla Energy Ventures Limited | | Licence type | Electricity supply licence (not gas) | | Application date | July 25, 2025 | | Consultation period | Until August 22, 2025 | | Regulator | Ofgem (Gas and Electricity Markets Authority) | | Expected approval timeline | Up to 9 months post-application (mid-late 2026) | | Potential start of retail supply | 2026 if licence granted | | Service scope | Retail electricity supply across England, Scotland, Wales | | Existing UK licence held | Electricity generation licence (since June 2020) | | Focus | Integration with Tesla vehicles and home batteries | | Key personnel | Andrew Payne, Head of Tesla's European energy operations |
Tesla's application for an electricity supply license signifies a potential future where Tesla Electric could offer competitive charging rates for Tesla vehicles and operate a Virtual Power Plant (VPP) program in the UK, similar to their initiative in Texas. With approval, Tesla would have the ability to set tariffs and bill customers, allowing them to participate in balancing and wholesale electricity markets within Great Britain.
If Tesla Electric receives the license, they could provide electricity to homes and commercial premises across England, Scotland, and Wales, potentially integrating Tesla products such as electric vehicles and Powerwall home batteries into a cohesive energy supply ecosystem. This could mark a significant step in Tesla's international expansion, positioning them alongside established electricity suppliers like British Gas, Octopus Energy, and OVO in the UK market.
