A Guide to Letter of Authority (LOA)

What is a Letter of Authority? 

An LOA is a document that grants a third party, like a broker or consultant, the legal right to communicate with utility companies on your behalf. It outlines key details, like your business information, the third party you’re authorising (e.g., Businesswise Solutions), and the specific level of authority you’re giving them.

What information is required to complete an LOA?

You don’t need to write the LOA from scratch. We’ll provide you with a template that you can easily complete. Simply read it carefully, fill in the following details, place it on your company letterhead, sign it, and return it to us:

What else might you need in addition to the LOA?

It’s sometimes useful to provide us with copies of gas and electricity bills. These bills contain vital information, such as your business’s account details, meter identification numbers, and the sites covered. If your business has had a name change or moved into new premises recently, we’ll need that information and the name of the person authorised to sign contracts. These copies are useful as they ensure that we are picking up the correct meters when discussing your account with suppliers. 

What permissions does an LOA grant?

The level of authority that you can provide with an LOA can vary. Sometimes, the LOA will be for a specific purpose and therefore restricted to just one of the following. More often, the LOA will include multiple permissions to enable a full procurement exercise. The most common permissions include:

It’s important to note that the LOA does not automatically permit a third party to sign contracts on your behalf, only if it explicitly says so.

If, for any reason, you wish to withdraw the LOA, you can do so in writing. 

How long is the Letter of Authority valid for? 

Typically, an LOA is valid for 12 months. If the duration differs, it will be clearly outlined in the document. Before your LOA expires, the third party may ask you to sign a new one to ensure there is no disruption to your energy management services.

What happens next? 

Using Businesswise as an example, once we receive your signed LOA, our team will reach out to your current energy supplier and others to find the best energy contract for your business. We’ll keep you informed at every step, presenting the options so you can choose the right contract option. After that, we’ll handle everything, including switching suppliers if needed.