Tesla Energy Ventures Limited has been granted an electricity supply licence covering Great Britain, Ofgem confirmed on 12 March 2026. The regulator said the licence was formally approved by its governing body, the Gas and Electricity Markets Authority, under section 6(1)(d) of the Electricity Act 1989, and that it took effect at 1800hrs on Wednesday 11 March when the licensee was informed of the decision1.
The licence authorises the company to supply electricity to domestic and non-domestic consumers in Great Britain, which covers England, Wales and Scotland1. It does not permit dual fuel contracts combining electricity and gas, according to Electrek2. Ofgem said the application, assessment and approval process ran over seven months, from July 2025 to March 2026, and that the same regulatory criteria and assessment frameworks are used for all applicants1.
The application followed a statutory consultation that closed on 22 August 2025, with all representations reviewed and considered by Ofgem1. Electrek reported that over 8,400 people used a Best for Britain campaign to contact the regulator, arguing that Elon Musk's political activities and spread of misinformation should disqualify Tesla from entering UK energy markets, and that Ofgem ultimately determined the application met all statutory licensing requirements2. Ofgem's own account does not mention the campaign or the number of representations1.
"has been granted a licence authorising it to supply electricity to domestic and non-domestic consumers in Great Britain."
Tesla Energy Ventures Limited is incorporated in England and Wales, and its ultimate parent undertaking and controlling party is Tesla, Inc, incorporated in the United States of America1. Ofgem stated that Tesla Motors Limited, a separate company also incorporated in England and Wales, was granted an electricity generation licence in June 2020, and that this licence formed no part of the supply application, assessment or approval1. Electrek described the supply licence as a milestone in a six-year push to become a full energy provider in Britain, citing the Pillswood battery project near Hull, which it said became Europe's biggest battery at 196 MWh when it came online in late 2022, and a 1 GWh Megapack project with Matrix Renewables for a 500 MW battery energy storage system at Eccles in Scotland2.
As a licensed supplier, the company must comply with the Standard Licence Conditions, which Ofgem lists as including obligations on treating customers fairly, financial responsibility, operational capability, billing, information provision and consumer protection1. Ofgem said it will monitor compliance and may use enforcement powers including issuing directions, imposing financial penalties or modifying licence conditions, and that failure to comply may result in financial penalties or licence revocation1.
| Date | Event |
|---|---|
| 22 August 2025 | Consultation closed1 |
| 11 March 2026 | Licence took effect at 1800hrs1 |
| 12 March 2026 | Ofgem confirmed formal approval by the Gas and Electricity Markets Authority1 |
Why it matters for households
A new entrant holding a supply licence adds a name to the list of companies able to sell electricity to a home, but a licence is permission to trade rather than a product. No tariff rates, sign-up process or launch date had been published as of September 2026, according to Spirit Energy, which also reported that industry reporting in March and April expected a phased rollout in late 2026 with Powerwall owners first in line3. Until rates are published, there is nothing for a household to compare against existing energy suppliers or to weigh against the protections set out in the Ofgem licensing framework.
The licence is electricity only, so it does not cover gas supply2. For a household thinking about energy independence, the relevant question is whether a supplier tied to home battery hardware changes what a battery can earn. Spirit Energy reported that Powerwall owners on Intelligent Octopus Flux clear around £70 of benefit in a single winter month from importing overnight and exporting at the evening peak, and that no Tesla-run virtual power plant exists in Great Britain, so owners earning here do so through Octopus on a smart tariff rather than a Tesla programme3. Electrek reported that in Texas, Tesla Electric operates as a retail provider offering 100% renewable power, that customers with Powerwalls can earn credits by exporting stored energy with sellback rates updating every 15 minutes, and that Tesla has paid Powerwall owners $10 million through virtual power plants across its programmes2.
Vehicle to grid does not work with a Tesla in the UK, according to Spirit Energy, which stated that no current Tesla model supports vehicle to home or vehicle to grid through a third-party bidirectional charger, and that the vehicle, the charger and the installation each need G99 certification to the same standard3. The same publisher noted that the Model Y Performance was announced in October 2025 as supporting bidirectional charging by over-the-air update3.
What happens next
Ofgem said the licence instrument has been entered into its Electronic Public Register, which records all licences granted, revoked or modified1. The regulator said it will monitor compliance and may use enforcement powers under the Electricity Act 1989 and the Standard Licence Conditions1. No launch date or tariff has been announced3.
Sources3 cited
- Tesla Energy Ventures Ltd approved to supply electricity in Great Britain, ofgem-newsroom.prgloo.com
- Tesla Energy wins licence to supply electricity to UK homes | Electrek, electrek.co
- Tesla Energy UK: The Next Big Thing In The Energy Industry, blog.spiritenergy.co.uk