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Letter of Authority Guide

A clear guide to understanding what a Letter of Authority (LOA) is in the context of commercial energy, what it authorises your broker to do, and how to complete one correctly.

What is a Letter of Authority?

A Letter of Authority (LOA) is a written document that authorises a third party — such as an energy broker or consultant — to act on your behalf with your energy supplier
It allows the broker to request account information, obtain quotes and, in some cases, negotiate or switch contracts on your behalf
An LOA does not transfer ownership of your account or commit you to any contract
You can withdraw an LOA at any time by notifying your supplier and broker in writing

What an LOA typically authorises

Requesting your current contract details, rates and end date from your supplier
Obtaining consumption data and billing history
Requesting quotes from alternative suppliers on your behalf
Negotiating contract terms with suppliers
In some cases, signing a new contract on your behalf (check the LOA scope carefully)

What to check before signing an LOA

Confirm the scope — what exactly is the broker authorised to do?
Check the duration — how long does the LOA remain valid?
Confirm whether the broker is authorised to sign contracts on your behalf without further approval
Check the broker's commission disclosure — how are they remunerated?
Ensure the LOA can be withdrawn at any time without penalty

How to complete an LOA correctly

Include your full business name and registered address
Include your MPAN (electricity) and/or MPRN (gas) numbers
Include your account number with the relevant supplier(s)
Sign and date the document — use the name of an authorised signatory
Keep a copy for your records

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