Elon Musk warned by Ofgem that Tesla’s energy licence can be revoked
Ofgem has issued a stern warning to Elon Musk’s company, saying it “will not hesitate” to use its enforcement powers if Tesla fails to meet its regulatory obligations in the UK.
The energy regulator confirmed that Tesla Energy Ventures Limited has been granted a licence to supply electricity to British homes, but emphasised the company will face the same obligations as all other suppliers.
The decision has ignited controversy among politicians and campaigners, who have raised concerns about the company’s role in critical infrastructure.
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Controversy over Tesla’s UK energy plans
The granting of a licence to Tesla has prompted sharp political criticism.
Liberal Democrat leader Ed Davey said the Government should intervene, tweeting that “Ed Miliband must step in and bar Tesla from holding an energy licence” and warning that “Elon Musk is a threat to our national security and clearly not a fit person to operate in our energy industry”.
“We can’t have the lights go out because he’s having a strop on X,” he added.
Campaign group Best for Britain, which led opposition to the licence, said its supporters had raised what it called “real public concern” about giving Musk access to the UK’s energy supply, describing the decision as a “powergrab” and urging ministers to reverse it.
Supporters of the protest, which garnered over 18,000 signatures aiming to prevent the license being granted, highlighted Musk’s public statements and social media activity during the consultation process as reasons they believed he should not be entrusted with energy infrastructure.
Ed Miliband must step in and bar Tesla from holding an energy licence.Elon Musk is a threat to our national security and clearly not a fit person to operate in our energy industry.We can’t have the lights go out because he’s having a strop on X. https://t.co/uWhMfk5cXKMarch 12, 2026
What Tesla’s plans are for the UK energy market?
Tesla Energy Ventures’ new licence allows it to supply electricity to both domestic and non-domestic customers across England, Scotland and Wales following a seven‑month assessment by Ofgem.
Tesla has existing energy‑related operations, including its Powerwall home battery storage systems, and a similar retail electricity service in Texas that integrates solar panels, battery storage and grid services.
The UK licence allows Tesla to offer energy services that tie together its technology products with electricity supply, although the company has not publicly disclosed detailed plans for tariffs or rollout.
Tesla itself did not immediately provide a comment on Ofgem’s decision, but in other markets the company has spoken of its ambition to enable customers to “power your home, electric vehicle and community with low‑cost sustainable electricity”.
Ofgem’s response to the concerns over Tesla
Ofgem’s approval came with a clear message on oversight. The regulator said its detailed assessment found that Tesla Energy Ventures meets all statutory requirements to be licensed as an energy supplier, and that the firm will be “subject to the same binding obligations, monitoring and enforcement as all other suppliers from day one”.
An Ofgem spokesperson stressed that compliance will be monitored continuously and that the regulator “will not hesitate to use our powers where standards are not met”.
These powers include the ability to revoke a licence with only 30 days notice and to issue financial penalties under certain terms.
They added that consumers “remain firmly in control” with the freedom to choose their supplier and switch if they wish, reinforcing that protecting consumer choice is central to its approach.
Ofgem’s stance underlines that while new entrants are welcome in the competitive UK energy market, they must uphold regulatory standards and prioritise consumer protections, with enforcement action ready if those obligations are breached.