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What is a Letter of Authority or LoA?

If you’ve expressed interest in changing your energy 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. How long is a Letter of Authority valid for?
  4. What does a Letter of Authority look like?
  5. What happens after you submit an LOA?
  6. 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 energy suppliers in the UK, the fastest and easiest way to do it is to go through an energy broker. In this transaction, the broker is known as the ‘agent’, and they can’t switch your supplier on your behalf without your express 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. 

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Once an LOA is no longer valid, the agent (in this case, the energy broker) won’t be able to speak to suppliers on your behalf until you sign a new one.

What does a Letter of Authority look like?

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:



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?

When you’ve signed an LOA and your contract has gone live, you’ll be assigned a personal account manager from our team of experts who’ll have the authority to manage any administrative tasks for you to make your 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 suppliers on your behalf. A good broker will remain completely transparent throughout the whole process.

Does Love Energy Savings provide an LOA? 

We’re 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: 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 the only contracts you will be agreeing to are ones which you have hand-picked yourself.

We include our LOA in your welcome pack, which we’ll send to you after your initial enquiry, so you’ll have everything you’ll 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!

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!