What is a Letter of Authority (LOA) When Switching Business Utilities?

Switching your business energy provider doesn’t have to be complicated, especially with companies like Smarter Business streamlining the process on your behalf.

Before a third party like a utilities broker can act for you however, there’s one essential piece of paperwork required: a Letter of Authority (LOA). It’s a simple document, but without it, nothing can move forward.

In this guide, we explain what an LOA is and what it enables a utilities broker to do.

In this guide, we explain how intelligent building energy management systems can help you do smarter business.

What’s on this page?

1. What is a Letter of Authority?
2. What can a utility broker do with a Letter of Authority?
3. How long is a Letter of Authority valid for?
4. Understanding the LOA review and signing process
5. Who is authorised to sign a Letter of Authority for a business?
6. Example of a Letter of Authority
7. What to expect after submitting an LOA
8. How Smarter Business can help you switch business utilities

What is a Letter of Authority?

A Letter of Authority (LOA) is a legal document that lets a third party act on your behalf, within agreed limits. In the utilities sector, businesses often sign an LOA to allow a broker like Smarter Business to manage the switching process. Without it, the broker isn’t allowed to access your energy or water usage data or speak to suppliers on your behalf.

Outside of business utilities, LOAs are used in a range of industries, including finance, telecoms, and tax. The document outlines the specific permissions granted, how long they’re valid, and the limitations. Simply put, it’s an effective way to ensure the right people are authorised to act on your behalf when needed. 

What can a utilities broker do with a Letter of Authority (LOA)?

When you sign a Letter of Authority (LOA) for a utilities broker like Smarter Business, you’re giving them permission to manage certain tasks on your behalf. This allows them to communicate directly with utilities suppliers, access your usage data, and streamline the process of finding the best utility deal for your business. They will not be able to agree to a contract without your consent.

Here’s what an energy broker can typically do with an LOA:

Access your usage data: With an LOA in place, your broker can request detailed information from your current supplier, such as past usage, billing history, and contract terms. This helps build a full picture of your energy or water profile.

Compare and negotiate rates: Using your data, your broker can speak with a panel of trusted suppliers to request tailored quotes. This allows them to negotiate better pricing and present you with competitive options.

Manage your switch: If you choose to change suppliers, the broker can manage the entire switching process, including paperwork and timelines. They can also help you renew with your current provider if that’s the better deal.

Communicate with your supplier: Your broker can handle all communication with your supplier, from resolving billing or account issues to organising appointments for meter upgrades or other site visits.

Provide meter readings: An LOA allows your broker to submit meter readings, helping ensure more accurate billing and avoiding costly estimated charges.

Handle complaints on your behalf: If any issues arise, your broker can raise formal complaints and follow up with your supplier. They’ll handle the process for you from start to finish.

How long is a Letter of Authority valid for?

A Letter of Authority typically remains valid for 12 months, though this can vary and may be supplier dependent. The validity period will be clearly stated on the LOA for you to check. 

Once your LOA expires, you’ll need to sign a new one to enable your broker to keep acting on your behalf.

If at any point you no longer want your broker to act on your behalf, you can cancel the LOA easily by getting in touch via phone, email, or in writing. Once your request is received, the authority is withdrawn immediately. 

Keep in mind, signing an LOA doesn’t lock you into a contract – it simply allows the broker to gather information and explore options for you. You still have full control over any final decisions.

Understanding the LOA review and signing process

While the specific steps may vary depending on the service or purpose of the LOA, here’s how the process typically works when engaging the services of Smarter Business:

• You are not required to write the Letter of Authority yourself; we provide the LOA for your review.

• You’ll have the opportunity to read through the document to ensure you are comfortable with the terms. If there’s anything you are unsure about or would like adjusted, you are welcome to request changes before signing.

• Once approved, the LOA is sent via DocuSign for a fast and secure digital signature.

• If DocuSign isn’t an option, we’ll ask you to print the LOA on your company letterhead, sign it, and return it to us.

This process is designed to be simple and transparent, ensuring you’re fully informed and in control at every step.

Who is authorised to sign a Letter of Authority for a business?

As an LOA gives a third party permission to act on your company’s behalf, it must be signed by someone with the legal authority to grant that permission. In most cases, this will be a company director, business owner, or someone in a senior management position.

To help verify the legitimacy of the request and reduce any delays related to background checks, it’s a good idea to use your official company letterhead or include your business logo when submitting an LOA. 

Example of a Letter of Authority (LOA)

Below is an example of a Letter of Authority for Smarter Business:

What to expect after submitting a Letter of Authority

As soon as you’ve signed and submitted your Letter of Authority, your broker can begin working on your behalf right away, since the LOA is valid from the date it’s signed. There’s no waiting period, so your broker can immediately start gathering data, contacting suppliers, and sourcing competitive quotes for your business gas, electricity or water. It streamlines the process and takes the pressure off you, making the switch simpler and easier.

How Smarter Business can help you switch business utilities

Smarter Business helps UK businesses save time and money by comparing prices on energy and water contracts. Our team works directly with a vetted panel of trusted UK suppliers to find competitive rates tailored to your business needs and goals. Once you choose a contract, we’ll handle everything, from gathering quotes to managing the switch, so you can focus on running your business.

To get started, enter some details on our quick online form for a free quote or call 01444 220060 to speak with an advisor. Whether you’re switching energy or looking for a water contract, it’s a simple, hassle-free way to take control of your utility costs.

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