Letters of Authority explained

If you ask a broker or energy consultant to look at your contract, sooner or later they will ask you to sign a Letter of Authority, usually shortened to LOA. It is a short document, but it gives someone else access to your energy accounts, so it is worth knowing what you are agreeing to.

What an LOA is

An LOA is a signed letter from your business to your energy supplier. It names a third party, such as a broker or consultant, and confirms that the supplier may deal with that party about your account. Without one, your supplier should not discuss your account with anyone other than you, because the information is confidential and partly personal data.

What it usually lets them see

• Your consumption history, often the last 12 months or more.
• Your current unit rates and standing charges.
• Your contract start and end dates, and the notice terms.
• Your meter details, including the MPAN for electricity and MPRN for gas.

With that information a broker can ask other suppliers for prices based on your real usage, rather than estimates.

What it may let them do

This depends entirely on the wording, so read it before you sign. Some LOAs only allow information to be requested. Others go further and allow the third party to:

• ask suppliers for quotes in your name;
• give notice to end your current contract, so you are not rolled over;
• negotiate with suppliers on your behalf.

An LOA on its own should not sign you up to a new contract. If a letter gives the third party power to agree contracts for you and you do not want that, ask for it to be removed before you sign. You are entitled to see the offer and its terms before anything is agreed.

How long it lasts

An LOA should say when it starts and when it ends. There is no single standard length, so check the end date. If there is none, ask for one to be added. An open-ended authority is hard to keep track of, especially if you use different brokers over the years.

What a good LOA includes

• Your business’s full legal name, address and, for a company, its registered number.
• Each site address, with its MPAN or MPRN.
• The name and contact details of the broker or consultant.
• Exactly what it allows them to do.
• A start date and an end date.
• The signature, name and role of someone with authority to sign for your business, such as a director, partner or the owner.

How to withdraw it

You can withdraw an LOA at any time. Write to the broker or consultant, say that you are withdrawing the authority and from what date, and keep a copy. It is sensible to tell your supplier too, so it stops sharing your account details. Withdrawing an LOA does not cancel a contract you have already agreed; that is governed by the contract’s own terms.

If you signed an LOA with ITEA Limited or BizUp360, email sales@itealimited.co.uk to withdraw it. Our privacy notice explains how we use the information we receive under it and how long we keep it.

Before you sign: five checks

• Who is it for, and which redress scheme does that firm belong to? (Why that matters.)
• Does it cover only information, or more?
• Are all your sites and meters listed correctly?
• When does it end?
• Do you have a copy?

Short definitions of LOA, MPAN, MPRN and related terms are in the BizUp360 glossary. General guide only: the wording of each LOA differs, so read yours.