BILLIONAIRE Elon Musk is set to shake up the British energy market after his tech giant Tesla was officially granted a licence to power our homes.
The move by regulator Ofgem means the electric car king can now go head-to-head with the likes of British Gas and Octopus Energy to grab a slice of your monthly spend.
Industry experts believe the arrival of the Texas-based firm could spark a price war that helps families finally bring down their’ eye-watering utility costs.
Tesla Energy Ventures was given the formal thumbs-up on Thursday following a rigorous application process that began last summer.
The new licence allows the firm to supply electricity directly to domestic properties across the country for the first time.
While many know Musk for his sleek cars and space rockets, this latest venture focuses on his “Tesla Electric” vision which has already taken off in the US.
The system works by using solar panels and the firm’s famous Powerwall batteries to store energy when it is cheap and then feed it back into the home or the National Grid when prices spike.
Households have been battered by surging energy costs over the last few years following global conflicts and supply chain chaos.
Musk’s entry into the UK market is seen as a major challenge to the “Big Six suppliers who have dominated the scene for decades.
It is important to note that this new licence is strictly for electricity only and does not cover gas supplies.
This means the service will be aimed squarely at the growing number of eco-conscious Brits who have ditched gas boilers for electric heat pumps and solar power.
Existing Tesla fans in Britain are already using the firm’s home batteries to charge their cars, but until now, they couldn’t get their entire energy bill managed by the Musk empire.
This change allows Tesla to act as a full-scale retail supplier, promising a high-tech approach to managing how much power we use and when we use it.
The regulator Ofgem has warned that it will be keeping a very close eye on the newcomer to ensure customers are treated fairly.
Tesla will have to follow strict rules on billing transparency and financial responsibility or face massive fines under the Electricity Act.
Despite the excitement, Musk faces a tough crowd as sales of his electric vehicles dipped by nearly 9% last year.
The Manchester-based energy arm of the company is expected to roll out its new tariffs soon.
