What is an LOA and why might I be asked for one?
Letter of Authority
For anyone who has shown interest in switching their business electricity or gas supplier, they may have seen the term ‘Letter of Authority’. In the commercial energy space, a Letter of Authority or ‘LoA’ for short can be quite an important document. If you are unsure about these and want to know how they could be useful, our guide hopes to provide an in-depth explanation below.
What is a Letter of Authority?
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Are Letters of Authority safe to sign?
Like any legally binding agreement, it is of utmost importance that you fully read and understand what permissions you are granting to the third party before signing the document.
How long is a Letter of Authority valid for?
Normally, a Letter of Authority will usually be valid for 12 months. This will also be similar across other sectors too, as it is an industry standard. Always check the duration of validity before signing as this should be stated on the document. A third party must clearly state if an LoA is valid for less than or more than 12 months.
Once this validity period expires, the business energy broker will not be able to speak to commercial suppliers on your behalf. If you wish for the broker to act on your behalf once more, they will be required to sign a new Letter of Authority.
Some may see this as additional administration work, but it is for your company’s benefit. After all, you would not want to give a third party lifetime authorisation to act on your behalf.
How do I write a Letter of Authority?
How long does it take to approve my Letter of Authority?
Once a Letter of Authority has been submitted, it will usually be processed within several working days. You will be contacted to confirm that the third party is now able to act on your behalf for the relevant purpose(s).
Does Utility Saving Expert provide a LOA?
Utility Saving Expert always want to look for new ways to make the lives of their users even easier. For this reason, we are able to provide you with our own letter of authority that you can use. This means you don’t have to take the time to create your own.
It is important to highlight that our letter of authority 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 authorisation. This means that you do not need to be concerned about signing up for something you did not agree to in the first place. You will choose your own tariff.
When dealing with energy brokers, a LOA should be included in your welcome pack, this will be sent to you after your initial enquiry. This gives you all the relevant information you need to better understand the straightforward transition process.
All that is required on your part is to print the Letter of Authority on paper with your company information (name, registered address etc.) and have it manually signed by an authorised signatory from your business. You can then scan and send the document via email or send it through the post.