MWE Correspondent
Elon Musk’s company has applied to the UK regulator Ofgem for a licence to supply electricity directly to homes and businesses across England, Scotland, and Wales.
The application, submitted by its UK-based energy division in Manchester, signals the firm’s ambition to expand beyond car manufacturing into the country’s competitive retail power market. If approved, it could begin supplying electricity as early as next year—placing it in direct competition with long-established providers.
The company is no stranger to the British market. Since 2020, it has held a licence to generate electricity, but this latest step would allow it to sell power directly to consumers. Notably, the application does not cover gas supply, meaning customers seeking both electricity and gas in one package would need a separate gas provider.
Signed by Andrew Payne, head of the company’s European energy operations, the application appeared on Ofgem’s website on July 25. Members of the public have until August 22 to submit comments, after which the regulator could take up to nine months to reach a decision.
This expansion builds on the company’s growing portfolio in the energy sector. In Texas, it operates a retail electricity business under the name Tesla Electric, featuring an innovative virtual power plant program. That initiative allows customers to sell surplus energy stored in home batteries—such as the Tesla Powerwall—back to the grid, helping balance supply and demand.
Also Read; Mali Military Detains Suspected Coup Plotters Amid Instability
Industry analysts say the UK market presents both opportunities and challenges. While consumer interest in renewable and decentralised energy is rising, the country’s retail energy sector is dominated by a handful of major suppliers, making it difficult for new entrants to gain a foothold.
The timing is also noteworthy. Sales of the company’s electric vehicles in the UK fell sharply in July—nearly 60% lower than the same month last year—prompting speculation that the energy push is part of a broader strategy to offset automotive sector volatility.
If the licence is granted, industry observers expect the company to leverage its expertise in renewable energy, battery storage, and smart-grid technology to attract environmentally conscious customers. Whether that will be enough to disrupt a market long controlled by established giants remains to be seen.
