A letter of authority (LOA) records permission for another organisation, such as an energy broker, to act for your business within a stated scope. Before signing, check the powers, supplies, duration and any accompanying service terms. Do not rely on the document's title or a verbal description: the wording determines what authority you are being asked to give.
What is an energy letter of authority?
A broker may need permission to obtain bills, contract details or consumption information and discuss your account with the supplier. For example, EDF's smart-meter data request process requires an appropriate LOA before releasing a customer's data to a third party.
That explains why an LOA can be useful. It does not establish that every proposed permission is necessary for your enquiry. Ask the broker which tasks it needs to perform and which clauses allow them.
Read the entire signing pack. A document described as an LOA may be presented alongside broker service terms or other commitments. Review those separately, including fees and termination provisions, rather than treating the whole pack as administrative paperwork.
Does the LOA allow the broker to agree a contract?
Look for the actual actions permitted. Does the authority allow information requests only, or also account changes, termination notices, meter appointments, contract negotiation or acceptance? Do not assume labels such as “basic”, “full” or “level two” have identical meanings across providers.
If you want quotation support only, ask for the wording to make that limit explicit and for any contract acceptance to remain subject to your separate approval. Ask whether the supplier will recognise the proposed scope. Choose the scope deliberately rather than assuming a standard form fits every business.
EDF's published account-access guide, for a specific customer channel, distinguishes full and partial access, including particular sites and data. Its process is an example of scope being adjustable; it is not a universal LOA format.
Use a signing checklist
| Check | What you want to establish |
|---|---|
| Business and representative | The correct legal business and the organisation receiving authority. |
| Supplies | The sites, accounts and supply identifiers included, with any exclusions. |
| Actions | Exactly what information or decisions the representative may handle. |
| Duration | Clear start and end dates, and any renewal provision. |
| Signatory | Someone with the appropriate authority within your business. |
| Other terms | Any fees, exclusivity, cancellation provisions or separate service agreement. |
| Ending access | How to withdraw or replace the authority and who must be notified. |
EDF's small-business LOA guidance illustrates supplier checks on names, signatories, site coverage and dates. Check the requirements of the actual supplier and customer channel; do not assume one supplier's validity period or signing process applies everywhere.
Keep a copy of the exact signed version and any attachments. If changes are agreed, make sure the final document contains them. A reassuring email does not help colleagues identify the operative wording if a different version is retained in the account file.
Record expiry dates and keep the authority under review
For business supplies in Great Britain, maintain a simple register showing who holds authority, for which supplies and until when. Read any expiry and renewal provision: do not assume every supplier or representative uses the same validity period. Review it when a broker relationship ends, a site closes or the responsible member of staff changes. If continuing support requires renewed authority, agree the scope again and retain the replacement document rather than relying on the existence of an old signature.
If you want to end or narrow access, notify the representative and relevant suppliers in writing and ask them to confirm what they have recorded. Check whether any action was already taken under the existing authority.
Withdrawing an LOA should not be treated as automatic cancellation of an energy contract or a separate broker service agreement. Ask what commitments exist and obtain advice on disputed obligations where needed. See our guide to avoiding unwanted energy commitments.
Ask for a scope you are comfortable approving
Hypothetical example: an operations manager wants a broker to collect invoices for three sites, while the finance director retains procurement decisions. The request should identify those three supplies and the information needed, while making the decision boundary clear. “Act for us on energy matters” would leave much more to interpretation.
BBA Energy's services page gives context for the enquiries you may want help with. Agree the task first, then check that the authority supports it. If the document's effect remains unclear, have the wording reviewed before signing rather than assuming its purpose makes it harmless.