Tesla is preparing to challenge Britain’s established energy providers by launching its own electricity supply service in the coming months.
The electric vehicle manufacturer submitted an application to the regulator Ofgem at the end of July for a licence to sell power directly to UK households.
GETTY
|
Elon Musk could look to launch Tesla Electric in the UK to sell power to households
Andrew Payne, who oversees Tesla’s European energy operations, signed the regulatory application on behalf of Tesla Energy Ventures, the company’s energy subsidiary.
The move suggests the American firm could begin supplying electricity to British homes as early as next year, The Telegraph reported.
It is expected to work seamlessly with Tesla’s existing products, particularly its electric vehicles and Powerwall home storage systems.
This integration could offer customers significant savings on their energy bills through coordinated charging and power management.
TESLA
|
The Tesla Powerwall is already popular with customers around the world
In Texas, where Tesla has operated as an electricity supplier for three years, the company provides a fixed-rate plan allowing unlimited vehicle charging during specific hours.
British customers with Powerwall batteries would likely be able to connect these units to the national grid and receive payments when Tesla draws power from them to supply other households.
The company’s approach centres on creating what it describes as a “virtual power plant” – a network of distributed home batteries that can store and redistribute electricity based on demand.
Tesla has already established a substantial presence through its vehicle sales, with over 250,000 cars delivered to British customers representing a ready-made consumer base.
LATEST DEVELOPMENTS:
Beyond its automotive footprint, Tesla has deployed tens of thousands of Powerwall home storage units across the country.
These installations, combined with the company’s home charging equipment, create an existing infrastructure network that traditional energy suppliers lack.
The firm has maintained an active role in Britain’s wholesale electricity market since securing a generation licence from Ofgem in 2020.
Its large-scale battery installations and Autobidder software already facilitate electricity trading, positioning the company as an established player in the broader energy ecosystem rather than a complete newcomer.
TESLA
|
The Tesla Powerwall could soon become a staple for households across the UK
Tesla is also positioned to capitalise on emerging vehicle-to-home technology, which allows electric cars to power households directly.
Energy companies have been trialling this capability, and Tesla’s extensive fleet could provide a significant advantage in implementing such systems.
Tesla previously partnered with Octopus Energy in 2020 for an energy plan but terminated the arrangement after three years to pursue independent operations.
The companies continue collaborating, allowing Powerwall owners to utilise Octopus’s platform for selling electricity during peak periods.