Business energy letter of authority

What a business energy letter of authority allows

A business energy letter of authority allows specific information to be accessed so an energy account can be reviewed accurately. The level of access is limited and focused on understanding the current position.

Under a standard business energy letter of authority, the authorised party may be able to access:

• Contract and tariff details

• Meter information such as MPAN or MPRN numbers

• Consumption and usage data

• Current supplier and supply status

• Communication with the energy supplier on your behalf

This access helps ensure that any advice or recommendations are based on accurate and up to date information.

What a business energy letter of authority does not allow

A business energy letter of authority has clear limits. It does not allow:

• A new energy contract to be agreed
• Changes to your current energy supplier
• Automatic renewal or switching

In some cases, extended letters of authority may be used that include permission to agree contracts, sometimes referred to as Level 2 authority. This is separate from a standard letter of authority and should always be clearly explained before being signed.

Why a business may be asked to provide a letter of authority

Businesses are commonly asked to provide a letter of authority when they want help understanding or reviewing their energy arrangements.

This may include situations such as checking contract end dates, reviewing renewal options, resolving billing issues, confirming meter details, or seeking independent advice on electricity or gas supply.

In all cases, the purpose is to access information, not to make changes without approval.

Is a business energy letter of authority legally binding

A business energy letter of authority is legally valid in that it grants permission to access account and contract information. However, it does not create a binding agreement for energy supply.

Any change to an energy contract, supplier, or tariff would still require explicit approval from the business.

How long is a business energy letter of authority valid for

Most business energy letters of authority are valid for a defined period, often between six and twelve months. The duration should be clearly stated on the document.

A letter of authority can usually be withdrawn at any time by notifying the relevant parties in writing.

Who should sign a business energy letter of authority

A letter of authority should be signed by someone authorised to act on behalf of the business. This is typically a director, owner, or an individual responsible for energy, facilities, or finance.

If there is any uncertainty about who should sign, this should be clarified before proceeding.

Does a letter of authority affect energy supply

No. A business energy letter of authority does not affect the physical supply of electricity or gas.

Energy continues to be supplied as normal. The letter only relates to communication and access to account information.

When it makes sense to review a business energy account

An energy account review can be helpful if a business is unsure when its contract ends, has experienced higher than expected bills, manages multiple meters or sites, or has not reviewed its energy arrangements for several years.

A review allows potential issues to be identified before any decisions are made.

If you are also reviewing water accounts, you may find it helpful to understand how a business water letter of authority works.