What Is a Letter of Authority and Why Do You Need One?

If you’ve ever spoken to an energy broker, one of the first things they’ll ask you to sign is a Letter of Authority — or LOA. It sounds official and a bit intimidating, but it’s actually one of the simplest documents in the energy world. Let’s break it down.

What is an LOA?

A Letter of Authority is a short document that gives your energy broker permission to act on your behalf. Specifically, it authorises us to:

• Contact your current energy supplier
• Access your account information (consumption data, contract details, meter numbers)
• Request quotations from other suppliers
• Negotiate terms on your behalf

That’s it. It doesn’t commit you to anything. It doesn’t transfer your account. It doesn’t cost you a penny.

Why do brokers need one?

Energy suppliers won’t share your account information with anyone unless they have written permission from you. This is actually a good thing — it protects your data.

Without an LOA, we can’t see your current rates, your consumption history, or your contract end date. And without that information, we can’t compare the market properly or negotiate a better deal for you.

Think of it like giving your accountant access to your bank statements. They need the information to do their job. The LOA gives us the information we need to do ours.

Is it safe to sign?

Yes. An LOA is a standard industry document used by every legitimate energy broker in the UK. Here’s what it does and doesn’t do:

It does:

• Give your broker permission to access your energy account data
• Allow your broker to request quotes on your behalf
• Stay valid for a fixed period (usually 12 months)

It doesn’t:

• Commit you to switching supplier
• Give anyone permission to sign a contract on your behalf
• Transfer ownership of your energy account
• Cost you anything
• Lock you in with the broker

You can withdraw your LOA at any time by telling your broker or your supplier in writing. No questions asked.

What happens after you sign?

Once we receive your signed LOA, here’s what happens:

1. We send it to your supplier. This is usually done digitally — most suppliers accept LOAs via email or through their broker portals.
2. Your supplier shares your data. Within a few business days, we’ll receive your consumption data, meter details, and contract information.
3. We search the market. Using your actual consumption data, we compare rates across every supplier in the market. No guesswork, no estimates.
4. You get a deal room. We present your options in a clear, digital deal room where you can compare quotes side by side.
5. You decide. Nothing happens without your say-so. If you like what you see, you approve it. If not, no harm done.

Red flags to watch for

While LOAs are perfectly safe, there are a few things to be cautious about:

• Brokers who won’t explain what the LOA covers. If they’re evasive, that’s a bad sign.
• LOAs that include contract commitment clauses. Your LOA should only authorise access to information, not commit you to a contract.
• Pressure to sign immediately. A legitimate broker will give you time to read and understand the document.
• No clear cancellation process. You should always know how to withdraw your LOA.

At Edge Energy, our LOAs are sent digitally through Signable, so you can read them at your own pace and sign from your phone or laptop. And we’re always happy to walk you through it.

The short version

An LOA is permission to look, not permission to act. It lets your broker do their job — comparing the market and finding you a better deal — without committing you to anything. It’s standard, it’s safe, and it’s the first step to actually knowing whether you’re overpaying for energy.