Tesla seeks authorization for UK electricity distribution services
Tesla Electric, a division of the global electric vehicle giant, has submitted an application on July 25, 2025, to the UK's energy regulator, Ofgem, marking its first international expansion beyond the United States[1][2][4]. The application seeks a license to supply electricity to homes and businesses across England, Scotland, and Wales, expanding beyond its existing generation licence granted in 2020.
Ofgem confirmed the application and opened a stakeholder consultation period that closed on August 22, 2025[1][2]. Following this consultation, Ofgem will review responses before making a decision. As of August 23, 2025, the application is under consideration by Ofgem, with no official approval or rejection announced yet.
The expected timeline for a decision is potentially in the last quarter of 2025 or early 2026, as Ofgem typically takes several weeks to a few months after the consultation closes to assess applications and stakeholder feedback before issuing a final decision[2].
The application was made by Tesla Energy Ventures, a subsidiary of Tesla based in Manchester, England. If approved, Tesla Electric could provide electricity to homes and commercial premises across England, Scotland, and Wales as early as next year.
Tesla Electric's operations in Texas include a Virtual Power Plant (VPP) program, which enables the company to stabilize renewable energy supply by pooling small-scale energy storage into a larger, coordinated network[5]. The VPP program also pays Powerwall owners for feeding stored electricity back to the grid during peak demand. In addition, Tesla Electric offers competitive charging rates for Tesla vehicles in Texas.
The licensing process by Ofgem can take up to nine months, but some cases may move faster. The head of Tesla's European energy operations, Andrew Payne, signed the application, indicating Tesla's commitment to the UK market.
If Tesla Electric is successful in obtaining the license, it will join UK retail electricity suppliers like British Gas and Octopus Energy, complementing its energy product offerings and supporting its business diversification beyond EV sales[1][4]. However, the regulatory decision will primarily hinge on compliance with licensing criteria rather than public sentiment, as some public opposition in the UK centered around skepticism toward CEO Elon Musk could influence opinions during the licensing process[3].
[1] https://www.tesla.com/news/tesla-electric-uk-regulatory-approval [2] https://www.ofgem.gov.uk/publications-and-updates/tesla-electric-limited-application-for-a-licence-to-supply-electricity [3] https://www.bbc.co.uk/news/business-57874587 [4] https://www.tesla.com/energy [5] https://www.tesla.com/support/powerwall/virtual-power-plant
Read also:
- Musk announces intention to sue Apple for overlooking X and Grok in the top app listings
- Innovative Company ILiAD Technologies Introduces ILiAD+: Boosting Direct Lithium Extraction Technology's Efficiency Substantially
- Nuclear Ambitions at a U.S. Airport Spark Controversy, With Opposition Swelling
- Haval H6 Hybrid Analysis: Delving into Engine Performance and Fuel Efficiency
