Brokers and procurement
Business energy Letters of Authority explained
What am I allowing an energy broker to do?
A Letter of Authority, usually shortened to LOA, allows a broker or consultant to carry out specified activities for your organisation. The wording matters. Authority to obtain data or quotations is not necessarily the same as authority to negotiate or enter a contract.
Written by Energy Guide editorial team · Specialist review: Pending · Source checked:
Why an LOA is used
Suppliers and industry service providers may require proof that the broker has permission to request account, meter or consumption information. An LOA creates that permission within stated limits.
Check the scope
Read the operative wording, duration, sites and supply points covered. Do not rely on the document title alone.
- Is it exclusive or non-exclusive?
- Can the broker obtain information only?
- Can it negotiate or agree a contract?
- Which legal entities and sites are covered?
- How and when can it be withdrawn?
Keep a controlled record
For multi-site organisations, maintain a register of active LOAs, the broker involved, covered supply points, signature authority, start date and expiry or withdrawal date.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.