Elon Musk’s Tesla has won approval to supply electricity to households and businesses across Great Britain, as the tech billionaire expands his energy ambitions.

The energy regulator, Ofgem, has formally granted Tesla an electricity supply licence, enabling it to provide electricity to domestic and business premises in England, Scotland and Wales.

The company is expected to replicate its supply business in Texas, where it is branded as Tesla Electric and offers to help customers power “your home, electric vehicle and community with low-cost sustainable electricity”.

However, Tesla’s electricity licence means it cannot offer a dual fuel contract to households. It could supply a customer’s electricity if they had a separate tariff agreement for their gas supply.

In Texas the company already operates a “virtual power plant” that allows Tesla owners to charge their cars cheaply and then pays them for selling electricity stored in its Powerwall home batteries back to the grid.