LONDON, March 12 (Reuters) - Elon Musk's Tesla can soon

start supplying British homes with electricity after it was

granted a licence on Thursday, bringing a new competitor into

the market at a time of heightened worries over rising bills.

The country's energy regulator Ofgem said Tesla Energy

Ventures, a unit of Tesla, had now been approved as an

electricity supplier after a process which began last July.

The new licence positions Tesla, the Texas-based company

owned by billionaire Musk, for expansion in Britain, where it

will look to use its solar energy and battery storage business

to directly compete with existing household suppliers such as

Octopus Energy, British Gas and EDF.

Tesla Motors Limited, another subsidiary, already has an

electricity generation licence in Britain. Some owners of Tesla

electric cars use a Powerwall home battery which uses solar

energy to charge their vehicles, and excess supply can be sold

back into the grid.

Energy prices have surged since the war in Iran, leaving

British consumers worried over their bills.

Most British households are protected until July from the

immediate impact of higher gas prices on heating and electricity

costs, due to regulated tariffs, but the government will come

under pressure to provide support if the conflict lasts beyond

that period.

Sales of Tesla vehicles in Britain have been in decline in

recent years - they fell 8.9% year-on-year in 2025 - amid

competition from cheaper Chinese brands and a consumer backlash

against Musk's political outlook.