So, what is a letter of authority? Our business energy comparison expert guide is here to help you understand.
What is a letter of authority?
What is a letter of authority and what is it used for?
A letter of authority (or LOA) is a legal document that allows a third party, such as an energy broker, to correspond with other services, such as energy companies, on behalf of you and your business. The LOA will outline and stipulate the tasks that the third party must undertake. It’s essentially a special permission slip that allows another person or party to speak to another business.
LOAs are designed to reassure customers that the person they’ve appointed will keep their account information, billing details, and personal information safe and secure. It also ensures that they act in their best interests and outlines parameters for them to stick within.
Letter of authority examples
Below are some examples of the permissions included in an energy LOA:
If you’re time is tight, then the LOA will allow your energy broker to deal with any service or billing queries on your behalf.
An energy broker can ask your current provider for any historical information, including contract end dates, energy consumption, and prices. This can help them find you a better business energy quote.
If you’re not happy with the service from your supplier, then the LOA allows a broker to complain on your behalf.
Brokers can ask for quotes from different suppliers and negotiate a better rate that suits the needs of your business.
Does Business Energy Comparison provide an LOA?
Here at Business Energy Comparison, we’re dedicated to finding you the best deals on your business electricity comparison and help you compare business gas prices. We also know how stressful it can be to switch to a new supplier. That’s why we’ve taken the headache out of finding energy quotes that fit the needs of your business.
We want to make our customers’ lives easier – you are running a business after all – that’s why we’ll provide you with our own letter of authority. If you are still unsure about anything, contact our friendly experts who will help answer any of your questions.
Frequently Asked Questions
Once you’ve submitted your letter of authority, it usually takes around seven to 21 days to be approved. Then, when the contract has gone live, your energy broker or third party will get started on finding you the best deals for your business energy.
A letter of authority is designed to create a relationship between a business and a third party, allowing the third party to act on behalf of the business. Therefore, for a LOA to be official, both parties need to sign.
As with all legal documents, it’s imperative that you read all the information and fully understand it before proceeding. You are allowed to question any clauses and ask for clarification or request that they be removed. A LOA gives authority to a third party to make decisions on your behalf and act in your best interest, so once you’ve been happy with the permissions, it is safe to sign.
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