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What is a Letter of Authority or LoA?

If you’ve expressed interest in changing your business electricity or gas provider, you might have come across the term ‘Letter of Authority’. In the energy industry, Letters of Authority are important, but you might be unsure what they even are, let alone why you would need one.

Below, we’ve put together an in-depth guide designed to answer any questions you might have.

Contents

  1. What is a Letter of Authority (LOA)?
  2. What does a Letter of Authority have to do with switching energy suppliers?
  3. Is it safe to sign a Letter of Authority?
  4. How long is a Letter of Authority valid for?
  5. How do I write a Letter of Authority?
  6. What happens after you submit an LOA?
  7. How long does it take for a Letter of Authority to be approved?
  8. Does Love Energy Savings provide an LOA? 

What is a Letter of Authority (LOA)?

A Letter of Authority (LOA) is a legal document that allows customers to authorise someone to act on their behalf within agreed limits. They are often used to create an agreement between three or more parties.

LOAs give customers confidence that the person they’ve appointed knows what they are authorised to act upon, whether it’s account information, billing details, or personal information related to their business.  

What does a Letter of Authority have to do with switching energy suppliers?

If you want to switch business energy suppliers in the UK, the fastest and easiest way to do it is to go through a business energy broker. An energy broker is known as the ‘agent’ in legal parlance, and they can’t switch your supplier on your behalf without your permission.

To be legally admissable, that permission must come in the form of a written contract, verbal agreement or Letter of Authority.

LOAs are not only used in the energy sector: they’re also recognised legal documents that apply to a number of industries, including financial and medical. 

Is it safe to sign a Letter of Authority?

As with all legal documents, it is important you read and understand before you sign.

Love Energy Savings Letter of Authority template gives our agents authority to talk to energy suppliers on your behalf, and arrange your business gas or electricity switch. We will ask you to confirm your approval of a new supplier separately.

How long is a Letter of Authority valid for?

A Letter of Authority is usually valid for 12 months. This is the industry standard. LOAs will state their duration of validity, so if yours is valid for longer or shorter than 12 months, it should say so on the letter itself. 

Once an LOA is no longer valid, the agent (in this case, the business energy broker) won’t be able to speak to suppliers on your behalf until you sign a new one.

How do I write a letter of authority?

All LOAs should follow a standard format, including correct grammar and in-depth details regarding the concerned parties. Here’s a snapshot of what you can expect an LOA to look like:



Download it here - Letter of Authority

Accuracy is key when completing an LOA, as any mistakes can be time-consuming to rectify. Here are some tips to remember when filling in your LOA:

  1. Make sure you use paper with your company letterhead printed on it. Without the right letterhead, we may need to carry out background checks to verify your business before we can proceed.
  2. Include your full registered company name, address and postcode. A registered office address is required.
  3. Make sure your LOA is authorised by the correct person to ensure we have the permission we require to proceed.

What happens after you submit an LOA?

After you have signed and submitted a LOA to us and your contract has gone live, you will be assigned a personal account manager from our team of experts. Your dedicated advisors will have the authority to manage administrative tasks for you to make your electricity or gas switch as easy as possible. 

You're not signing your life away when you submit an LOA; it’s simply a standard process across the industry that gives us the permission we need to speak with energy suppliers on your behalf. A good business energy broker will remain completely transparent throughout the whole process.

How long does it take Love Energy Savings to approve my Letter of Authority?

Once you have sent us a Letter of Authority, this is usually processed within several days. We will contact you to confirm that we are now able to act on your behalf.

Does Love Energy Savings provide an LOA? 

We are always looking for ways to make our customer’s lives easier at Love Energy Savings, which is why we provide you with our own Letter of Authority: so you don’t have to go to the trouble of writing your own.

Our LOA explicitly states that while we can gather information, negotiate and submit a notice of termination on your behalf, we do not have the right to agree on a contract without your consent. This means that you don’t need to worry about signing up for something you did not agree to, your tariff will be picked by you.

We include our LOA in your welcome pack, which we will send to you after your initial enquiry, so you will have everything you need to ensure a quick and hassle-free transition process.

All you need to do is print out our Letter of Authority on paper with your company letterhead and have it manually signed by an authorised signatory from your business. Then scan and email to us or pop it in the post and you’ll be on a cheaper energy tariff in no time.

If you are still unsure about anything – whether it is to do with your LOA or any other aspect of your switch – don’t hesitate to get in touch on 0800 9888 375. Or if you’re just curious about how much money you could save on your energy bills by switching provider, take a look at our free energy comparison tool to find the best deals.

All you need to do is enter your postcode and see how much you could save!