Business Energy Glossary
What is a Letter of Authority (LOA)?
A Letter of Authority, usually shortened to LOA, is a written document that gives a third party (most commonly an energy broker or consultant) permission to act on behalf of a business customer in dealings with energy suppliers. The LOA allows the broker to request meter data, contract end dates, copies of bills, and quotations from other suppliers. It does not allow the broker to sign a contract on the customer behalf.
Without an LOA in place, suppliers will not share account information with anyone other than the named account holder. Brokers, consultants, and energy auditors all rely on a current LOA to do their work. Understanding what an LOA does and does not authorise is essential for any business engaging a third party.
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What an LOA authorises
A Letter of Authority (LOA) is a signed document letting a broker or consultant request a business’s energy account information and quotes from suppliers. It doesn’t commit you to any contract, but without one a broker can’t access your contract end dates or consumption data.
For the full explanation, see What does a business energy broker do?.
A standard energy LOA gives the holder authority to:
- Contact the current supplier to request meter point reference data (MPAN, MPRN).
- Request 12 to 24 months of historic consumption data.
- Obtain the current contract end date and rates.
- Request copies of recent bills.
- Approach other suppliers to obtain quotations against the meter points listed.
- Communicate with the existing supplier on routine account matters.
The LOA is the practical gateway to any kind of broker service, audit, or market comparison. Suppliers verify the LOA before sharing any data and refuse requests that come without one.
What an LOA does not authorise
An LOA is a permission document, not a power of attorney. A standard LOA does not allow the broker to:
- Sign a new supply contract on the customer behalf.
- Switch the customer to a new supplier without explicit instruction.
- Make any change that creates a financial commitment.
- Continue to act after the LOA has expired.
If a contract is signed or a switch happens without the customer explicitly authorising it, the LOA itself is not the cause. The most common explanation is that the customer has signed an additional “agency to contract” or “appointment of broker” document that does authorise contracting. Reading what is being signed matters.
Warning signs in an LOA
Five things to look out for in any LOA before signing:
- Indefinite duration. A standard LOA is time-limited (usually 12 months). Anything with no expiry should be questioned.
- Sole or exclusive wording. An LOA that locks the customer to a single broker for a fixed period restricts the ability to engage other brokers in parallel.
- Bundled contract language. Phrases like “authority to procure”, “agency to contract”, or “appointment of broker” suggest the document goes beyond information access.
- Auto-renewal. An LOA that quietly renews each year without the customer action.
- Digital signature without identity verification. Click-through LOAs with no second factor or identity check have weak audit trails and have been misused.
How long an LOA lasts
A typical LOA is valid for 12 months from the date of signing. Some brokers use 24 months. The end date should be clearly stated on the document.
After expiry the LOA no longer provides authority. The supplier will refuse data requests from the broker until a fresh LOA is issued. For ongoing broker services, the LOA is typically renewed before expiry to maintain continuous access.
For one-off services (a single procurement event, an audit, a one-time historic review), an LOA covering 3 to 6 months is often sufficient.
Multiple LOAs
A business can have multiple LOAs in place at the same time, with different brokers, for different purposes, or for the same purpose run in parallel.
Where multiple brokers hold LOAs, each can request data and gather quotations independently. The supplier serves each LOA holder according to their authority. This allows a business to compare broker services or to gather a wider set of supplier quotations.
The exception is where an LOA contains exclusive or sole-supplier wording. These clauses are not enforceable against the customer in the way the LOA suggests but they do represent a commercial promise made by the customer when signing.
How to revoke an LOA
Three ways to end an LOA before its natural expiry:
- Write to the broker. A short email withdrawing authority is enough. Keep a dated copy. The broker stops acting from the moment the notice is received.
- Write to the supplier. Tell the supplier which broker no longer has authority over which meter points. The supplier removes the broker from the account record.
- Issue a new LOA to a replacement broker. Most suppliers treat the latest LOA as the active one. A new LOA supersedes the previous one for any new activity.
If the LOA covered an extended term and the broker has prepaid suppliers or invested time on the account, there may be a commercial discussion about wind-down. The customer right to revoke is not in question, but the practical consequences should be handled cleanly.
a Letter of Authority (LOA) FAQs
What is a Letter of Authority for energy?
A written document that gives a third party (usually an energy broker or consultant) permission to act on behalf of a business customer in dealings with their energy suppliers. It allows information access and quote gathering but not contract signing.
Does signing an LOA commit me to anything?
No. An LOA permits information access. It does not commit the customer to any contract, supplier, or broker. A separate signed contract is required for any switch.
How long does an LOA last?
Typically 12 months from the date of signing. Some brokers use 24 months. The end date should be clearly stated on the document.
Can I have LOAs with more than one broker?
Yes. Unless the LOA contains exclusive wording, multiple brokers can hold LOAs in parallel. Each can gather data and quotations independently.
Can a broker sign a contract using just an LOA?
Not under a standard LOA. Any document that does authorise the broker to contract should be reviewed carefully before signing. Phrases like “authority to procure” or “agency to contract” go beyond standard information access.
How do I revoke an LOA?
Write to the broker withdrawing authority, and write to the supplier confirming the broker no longer represents the account. Either is effective alone; both together create a clean audit trail.
What information does an LOA give a broker access to?
Meter point reference data (MPAN, MPRN), 12 to 24 months of historic consumption, current contract details, recent bills, and the ability to request quotations from other suppliers.
What happens if I switch supplier mid-LOA?
The LOA continues to apply with both the previous and new supplier for the duration set on the document. The broker can continue to act under the same authority across the supplier change.