The company has sought approval for an energy licence from regulator Ofgem in order to take on energy supply giants including British Gas owner Centrica and Octopus Energy
Elon Musk’s Tesla is gearing up to break into the energy market and could start supplying British households within months. The firm has applied for an energy licence from regulator Ofgem, setting its sights on competing with big players like British Gas owner Centrica and Octopus Energy.
Since 2020, Tesla has been involved in the UK energy market, when it’s licence to be an electricity generator was approved. It plans to begin providing power to homes and businesses across England, Scotland, and Wales as early as next year.
Tesla Energy Ventures lodged the application last month, as revealed in a recent filing published by Ofgem. This news comes after a major broadband provider introduced a new £60 charge and issued a deadline to act.
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Andrew Payne, Director of Tesla’s European energy business, signed off on the application. The electric car giant, helmed by the world’s wealthiest man, also operates a solar energy and battery storage enterprise.
This move comes about two years after Tesla began recruiting for a Head of Operations to oversee its proposed energy supply venture. Tesla has been a player in the UK energy market since 2020.
In America, Musk’s group acted as an electricity supplier in Texas for the past three years. However, it now appears that this need to infiltrate the UK market comes during a decrease of demand for Tesla’s electric vehicles across Europe.
Industry data revealed a nearly 60 percent drop in new Tesla registrations in the UK in July compared to the same period last year. Figures showed that 987 new vehicles were registered in the UK in July, down from 2,462 in the same month the previous year.
Reporting that Ofgem can take up to nine months to process applications for energy supply licences, the BBC also highlighted Tesla’s harsh competitors EV maker, China’s BYD.
Tesla’s dropping numbers can be linked to Musk’s involvement in the White House, his work with US President Donald Trump being widely criticised, despite their online ‘break up’ on X (Twitter). Musk’s efforts in right-wing politics has found him involved in the UK, Italy and Germany – creating a rift between owners and would-be buyers Tesla’s electric cars.
British bill payers should note that Tesla’s energy supply would not apply to dual-fuel contract households due to the car manufacturer applying for the electricity licence alone, states the Guardian.