Tesla’s mission, it says, is to accelerate the transition to sustainable energy. AFP
Tesla’s mission, it says, is to accelerate the transition to sustainable energy. AFP
Tesla’s mission, it says, is to accelerate the transition to sustainable energy. AFP
Tesla’s mission, it says, is to accelerate the transition to sustainable energy. AFP

Business

Energy

Elon Musk and Tesla set out to disrupt UK energy market

Job advertisment reveals some of the reasons for bringing the Tesla brand to the British energy market

Simon Rushton
Simon Rushton

July 12, 2023

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  • Arabic

Billionaire disrupter Elon Musk is planning to shake up the UK energy market with a new electricity supplier, a new job advertisement reveals.

Tesla Electric wants to hire a head of operations – potentially the first of many jobs at the new supplier – as it creates a “retail electricity product”.

A LinkedIn advert for the job reveals some of the reasons for bringing Elon Musk and the Tesla brand to the British energy market.

The ideal candidate will have a “passion for sustainable energy and a healthy scepticism of the status quo in electricity markets”.

Tesla’s mission, it says, is to accelerate the transition to sustainable energy. Tesla Electric supplies electricity in the US to households that own other Tesla products.

In the UK, it is possible that Tesla Electric could work in a similar way with owners of the Tesla Powerwall, according to media reports.

The successful candidate for the British job, based in London or Manchester, will have a “proven track record in a leading position within a (preferably start-up) energy retailer in the UK” and “experience in building/growing a retail energy organisation”.

They will lead the “ongoing route to market activities, resulting in obtaining an electricity supply licence in the UK and accreditation to all associated relevant industry codes”.

They will also “scope and manage … processes to prepare for commercial launch of a retail electricity product in the UK”.

Tesla Electric’s advert read: “We believe strongly that simplifying and improving the customer experience around retail electricity and virtual power plants is necessary to drive significant adoption amongst consumers.

“Delivering a seamless, simple customer experience will ensure that small scale residential flexibility can be fully utilised to support the transition of the entire electricity grid to 100 per cent renewables.

“In this role you will have operational responsibility for our retail electricity activities in the UK.

“This includes responsibility for managing our market entry, and building out the team, systems and processes needed to start operations.”

The US household supply deals began in 2022 when Tesla drivers were offered electricity and introductory free charging.

Tesla has published what it calls a master plan to eliminate fossil fuels from the world economy by relying on electrification and smart power storage technologies.

Industry regulator Ofgem granted Tesla a licence in 2020.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

While you're here
What is graphene?

Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

Updated: July 13, 2023, 3:51 AM
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