Running a business is no joke. It requires effort, time, sacrifices, and a lot of hard work. There are so many factors you need to look at and keep in mind. Sometimes you become so preoccupied that you don't have time to handle their energy contracts, which is why most businesses turn to third-party intermediaries and agents that will handle their account, relations with suppliers, and switching.

But before a third party can take over, you need to pen down your permission in the form of a Letter of Authority. If you are new to the energy industry, then the term 'Letter of Authority' will be alien to you. But it is the most common and necessities one should be well aware of.

What is a letter of authority?

A letter of authority is a legal contract between two parties. You authorize the other party to take care of your matters concerning energy and electricity on behalf of your business. The third-party, also known as the agent or energy broker, compares and switches energy, handles negotiations with suppliers, and handles your account.

The letter of authority has all the tasks and services of the third party written down. An LOA is vital for a broker to take over on your behalf. You must sign it and submit it to the third party and your current energy supplier. A letter of Authority is usually valid for a year and must be renewed after it expires for the broker to continue providing its services.

What does a Letter of Authority allow a broker to do?

In the energy industry, a Letter of Authority grants the broker the following rights and permissions:

1) Access to your business's location and portfolio

2) Negotiate with your current supplier and handle all billing matters

3) Manage your account

4) Take care of administrative issues concerning your energy supplier.

5) Access to all your billing information, including payment details, debt information, and previous bills

6) Access to current and previous account details and information, including suppliers, supplier's contacts, pricing and billing details, contracts start and end dates, and consumption history information.

7) Transfer complaints to your supplier and manage and resolve them.

8) Obtain information from another party

9) Submit VAT forms, CCL exemption forms

10) Request you for new tools and meter exchanges

11) Take care of site visits

12) Take care of the transfer of tenancy

13) Handle relationships with the energy suppliers

14) Search for and provide you with the cheapest electricity and gas

15) Switch your energy contract and manage it

In a nutshell

Energy consultancy firms provide many great services, which you can obtain by signing a letter of authority. The letter of authority gives them the right and permission to take care of your matters concerning energy and electricity on your behalf. Each firm has its terms and conditions, so you should read it carefully and thoroughly before signing it.