Tesla Energy Ventures Ltd approved to supply electricity in Great Britain

Notes to editors

Ofgem is Great Britain’s independent energy regulator, accountable to Parliament. The licence for Tesla Energy Ventures has been granted solely by the Gas and Electricity Markets Authority (GEMA) under the Electricity Act 1989, Utilities Act 2000 and relevant licensing guidance.

GEMA applies its statutory duties in all supplier decisions: to protect the interests of existing and future consumers, including through promoting effective competition wherever appropriate, and to have regard to the need for licence holders to finance their activities.

The decision reflects this framework and was taken independently of Government.

Timeline

• 18th July 2025: Tesla Energy Ventures Limited published a notice of application for an electricity supply licence in accordance with section 6A(3) of the Electricity Act 1989.
  
  
• 25th July 2025: Ofgem published the notice of application and opened a statutory consultation which applies to all applications.
  
  
• 22nd August 2025: consultation closed. All representations received were reviewed and considered by Ofgem as part of the application process.
  
  
• up to March 2026: Ofgem assessed the application of Tesla Energy Ventures Limited’s operational capability, financial resilience, governance and ability to comply with its ongoing obligations as an electricity supplier. The same regulatory criteria and assessment frameworks are used for all applicants for an electricity supply licence.

Assessment

Ofgem’s assessment includes detailed consideration of the applicant’s operational capability, financial arrangements, governance and compliance frameworks and risk management arrangements. It also includes assessing applicants’ ability to comply with Standard Licence Conditions on an ongoing basis.

These included:

• SLC 4A — Operational Capability: SLC 4A requires a supplier to have the systems, staff, governance and operational infrastructure needed to run an energy business safely and reliably — including billing, customer‑service and complaints‑handling functions. Its purpose is simple: to ensure the company can operate competently from Day One and always meet all consumer and market obligations.
• SLC 4B — Financial Responsibility: SLC 4B requires a supplier to maintain strong, independent financial resilience — with adequate capital, liquidity and risk management — and expressly prohibits reliance on unsuitable cross‑subsidy from related companies. It exists to ensure suppliers can withstand shocks without exposing consumers or the system to financial risk.
• SLC 4C — Ongoing Fit and Proper Requirement: SLC 4C places a continuous duty on suppliers to ensure that anyone in a Significant Managerial Responsibility or Influence (SMRI) role is fit and proper, supported by proper governance and regular checks. Ofgem may probe concerns through SLC 5 information requests and can order the removal of senior individuals where conduct, competence or integrity fails to meet the required standard.

Licence Conditions

The electricity supply licence is subject to the Standard Licence Conditions (SLCs) applicable to all electricity suppliers. These impose legally binding obligations including:

• Obligations to treat consumers fairly and comply with consumer protection requirements;
• Requirements relating to financial responsibility; resilience and reporting;
• Obligations to comply with relevant industry codes, settlement arrangements and market rules
• Requirements to provide information to Ofgem and other bodies as required for regulatory oversight; and
• Obligations to maintain effective governance, systems and control

Failure to comply with licence conditions may result in enforcement action, including the imposition of financial penalties or licence revocation.

Fit and Proper Requirements

All licensed electricity suppliers have an ongoing legal duty under SLC 4A to take all reasonable steps to ensure that they, and their Significant Managers with Responsibility and Influence (SMRI), remain fit and proper to hold a licence. This is subject to Ofgem’s regulatory oversight and enforcement powers.

SLC 4C sets out factors for a supplier and its executives to be fit and proper to hold a licence. These may include being subject to relevant criminal convictions; insolvency or bankruptcy proceedings; director disqualifications; serious regulatory or enforcement action; or other conduct which may reasonably call into question their honesty, integrity, competence or financial soundness.

Ofgem does not assess or license individuals. The legal responsibility for compliance lies with the licensee.

Corporate information

Tesla Energy Ventures Limited is incorporated in England and Wales. Its ultimate parent undertaking and controlling party is Tesla, Inc incorporated in the United States of America.

Tesla Motors Limited, a separate company also incorporated in England and Wales, was granted an electricity generation licence in June 2020.

This licence formed no part of either Tesla Energy Ventures Limited’s application or Ofgem’s assessment or approval.