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Why do you need a Letter of Authority when switching energy?

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When switching energy suppliers with a broker, you may be asked to sign a Letter of Authority (LoA).

A Letter of Authority gives a broker permission to act on your behalf. The letter will specify the tasks a third party can handle. This allows your broker to consult with energy suppliers on your behalf.

Your energy broker won't be able to make any decisions without your consent. You will have the final say on all decisions taken.

Why does my business need to sign a Letter of Authority?

An LoA is required to request information from your current energy provider. This allows us to find the energy deals that best match your business needs.

When you switch with Business Energy, our experts will manage the entire process for you. A signed LoA is required to do this.

Are there different types of Letter of Authority?

Yes, Business Energy will only ever ask you for a Level 1 Letter of Authority. This gives us the ability to access basic information to get you a better energy deal. This includes:

  • Your current energy contract
  • Your meter readings
  • Your energy consumption

A Level 2 Letter of Authority gives a broker permission to access a broader range of your data. They can also confirm a new energy contract on your behalf.

Business Energy will not ask you to sign a Level 2 LoA. We will always gain your consent to confirm a new contract with an energy provider.

How do I write a Letter of Authority?

There is a standard format and language required for a Letter of Authority. If you require an LoA, our energy advisors will provide you with our official template.

The document must be accurate, so don’t try to write one from scratch. Our experts can support you to make sure it is correct prior to submission.

A Letter of Authority needs to be written on company headed paper. It should also include your full registered company name, address and postcode. The address much match with your registered office address. Your LoA must be signed and dated in the last 12 months.

Do I need a solicitor to prepare an LoA?

There is no requirement to use a solicitor when preparing an LoA. Most businesses use a standard template for a Level 1 Letter of Authority.

At Business Energy, we also provide a template that your business can use. As with all legal documents, it's advisable to check it carefully before signing. If you have any questions, our energy experts will be happy to help.

What happens after I submit an LoA?

When we've received signed LoA, it will be processed by our team. This usually takes a couple of days. We will be in touch with you as soon as the process is complete.

Our energy experts can then get to work on finding the best business energy deal for you. If you have any questions regarding your LoA, our team will be happy to help. You can call us on 0800 002 9822.

If you'd like to find out how much you could save by switching, complete our online comparison form today.

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