Tesla becomes a utility in the UK, setting up showdown with Octopus Energy
TL;DR
Tesla has become a licensed utility in the UK, enabling it to sell electricity directly to customers and compete with established providers like Octopus Energy, which is known for its renewable focus and innovative approach.
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Tesla is now an officially licensed utility in the United Kingdom, according to a new report from The Wall Street Journal. The automotive and energy company recently received a license from the Office of Gas and Electricity Markets, allowing it to sell electricity directly to households and commercial and industrial users.
The company has long dabbled in electricity markets. Its first pure energy products, the Powerwall and Powerpack, were introduced in 2015, but it wasn’t until a year later when Tesla merged with SolarCity that it started scaling the division rapidly. In 2022, the company launched Tesla Electric in Texas, which allowed it to sell electricity directly to customers. Powerwall owners can sell electrons from their batteries to participate in the company’s virtual power plant.
The new division, known as Tesla Energy Ventures, will compete with existing utilities in the U.K., including EDF, E.ON, and Octopus Energy. The competition with Octopus should prove particularly interesting. Since its founding in 2015, Octopus has become the country’s largest utility by focusing on slick software, renewable energy, and creative marketing. Sound familiar?