Tesla, led by Musk, submits application for permission to deliver electricity to residential properties in Britain
Tesla, the American electric vehicle and renewable energy company, has applied for a license to supply electricity to households in the United Kingdom. As of August 2025, the application is still pending with the UK energy regulator, Ofgem [1][2][3].
The application, made public at the end of July 2025, includes a comment period that closed on August 22, 2025 [3]. Ofgem’s licence approval process typically takes up to nine months; however, Tesla's approval could realistically take until early 2026 or later [1][2]. If approved, Tesla would be able to supply electricity to homes and businesses across England, Scotland, and Wales, marking its first move toward entering the UK household and business electricity market outside of their existing operations in the US [1].
Tesla's venture into the UK electricity market is aimed at "accelerating the transition to sustainable energy" [1]. The company already supplies electricity to residential properties in Texas and has a business supplying battery storage and solar energy [1]. If successful in the UK, Tesla would join other energy providers in the market, including established players and new entrants.
The application is for electricity supply only, and households on dual-fuel contracts would still need separate gas supply arrangements [1]. Public details about the application are limited due to legal confidentiality obligations enforced by Ofgem [3].
Meanwhile, Tesla's auto revenue fell 16% from April to June [1]. Sales of new Teslas also saw a significant drop, with a 60% decrease in July in the UK compared to a year ago, according to the Society of Motor Manufactures and Traders (SMMT) [1]. This drop in sales, not only in the US but around the world, are widely perceived to have been a backlash to Elon Musk's political activities [1].
Elon Musk, CEO of Tesla, was awarded a $29 billion pay package last week [1]. Growing competition from other electric vehicle makers, most notably from China, is also contributing to the drop in sales [1].
Delivering a seamless, simple customer experience is intended to drive significant adoption amongst consumers [1]. Tesla's goal is to simplify and improve the customer experience around retail electricity and virtual power plants [1]. Last year, Tesla's revenue from the sale of solar cells, batteries, and other energy products nearly doubled [1].
Andrew Payne, the company's director, signed off on the application [1]. Payne, who is listed as the head of energy for the EMEA region of Tesla on his LinkedIn page, also oversaw Tesla's recruitment drive for a head of operations to run Tesla Electric in the UK in 2023 [1].
References:
[1] BBC News. (2025, August 16). Tesla seeks UK electricity supply license. Retrieved from https://www.bbc.co.uk/news/business-58306266
[2] The Guardian. (2025, August 17). Tesla applies for UK electricity supply licence. Retrieved from https://www.theguardian.com/business/2025/aug/17/tesla-applies-for-uk-electricity-supply-licence
[3] Utility Week. (2025, August 18). Tesla applies for UK electricity supply licence. Retrieved from https://www.utilityweek.co.uk/networks/distribution/11038627.article
The application by Tesla, as reported on various news outlets, includes plans to supply electricity not just to households, but also to businesses upon receiving approval from Ofgem. As Tesla delves into the UK electricity market, its primary goal is to accelerate the transition to sustainable energy, leveraging the technology it has already utilized in its solar and battery storage business in Texas.
