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Last updated October 2026.
What a letter of authority is
A letter of authority is a short document, signed by the business, that permits a named broker to deal with energy suppliers on its behalf. Suppliers will not release contract details, consumption data or quotes to a third party without one, so a broker cannot do much before it is signed. It is the first thing most brokers ask for, and it deserves more attention than it gets.
A reasonable letter of authority allows the broker to obtain contract and billing information, request meter data, obtain quotes and, if separately agreed, serve termination notice and arrange a new contract. It names the business, the sites or meters it covers, the broker, and an expiry date.
What it should not do
| Clause | Why it matters | What to do |
|---|---|---|
| Exclusivity or sole agency | Prevents you using another broker or going direct, sometimes for years | Strike it out or limit it to the current procurement |
| Authority to sign contracts | Lets the broker bind you to a supply contract without your signature | Keep contract signature with the business, or limit to specific agreed terms |
| Open-ended duration | Authority continues indefinitely, including after you have moved on | Set an expiry of twelve months or the end of the current procurement |
| Authority to change payment details | Unnecessary for a comparison and a fraud risk | Remove |
| Commission or fee terms buried in the LOA | Commercial terms belong in a separate agreement you have read | Separate them |
Suppliers will also tell you that a letter of authority does not transfer liability. If a broker serves notice or agrees terms you did not want, the contract is still yours. That is the reason to keep signing authority with the business.
Talk it through with us
Send us a recent bill or a quick description of your sites and we will tell you plainly what applies to you and what it would involve. No obligation.
Managing and withdrawing one
Our own letter of authority is limited to information and quotes unless the business separately asks us to handle notices and contracts, carries a twelve-month expiry, and contains no exclusivity. The choosing a broker guide and the regulation page cover the rest of the due diligence.
Frequently asked questions
What is a letter of authority in energy?
A signed document permitting a named broker to obtain contract and consumption information and quotes from suppliers on a business’s behalf, and sometimes to serve notices and arrange contracts.
Does a letter of authority let a broker sign a contract for me?
Only if it says so. A reasonable LOA limits the broker to information and quotes, with contract signature kept by the business.
How long should a letter of authority last?
Twelve months or the end of the current procurement is reasonable. Open-ended authority should be avoided.
Can I have letters of authority with two brokers?
Yes, unless one of them contains an exclusivity clause, which is a reason not to sign it.
How do I cancel a letter of authority?
Write to the broker and to each supplier withdrawing it, and ask the suppliers to confirm it has been removed from their records.
Does signing a letter of authority commit me to anything?
Not to a contract. It authorises the broker to act within its terms; liability for any supply contract remains with the business, which is why the terms matter.
Need help? Get in touch
Call us on 020 8036 5715, or email us, and we will take it from there.