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 an energy broker permission to act on your behalf. Specifically, it authorises the broker 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, a broker can't see your current rates, your consumption history, or your contract end date. And without that information, they 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 the broker the information they need to do theirs.
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 the broker receives your signed LOA, here's what typically happens:
- They send it to your supplier. This is usually done digitally — most suppliers accept LOAs via email or through their broker portals.
- Your supplier shares your data. Within a few business days, the broker receives your consumption data, meter details, and contract information.
- They search the market. Using your actual consumption data, the broker compares rates across suppliers. No guesswork, no estimates.
- You receive quotes. The broker presents your options so you can compare them.
- 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.
After the switch: validate your bills
Once you've signed a new contract through a broker, there's one more step most businesses skip. Your new bills need to actually reflect the rates you agreed. Industry data shows that 1 in 5 energy bills contain errors, and contract changeovers are one of the most common points where mistakes happen — wrong tariff codes, incorrect standing charges, or a rate that doesn't match the signed agreement.
Once you've switched, make sure your new bills are correct. Edge validates every charge against the contract automatically, so billing errors get caught before you pay them.
The short version
An LOA is permission to look, not permission to act. It lets a broker do their job — comparing the market and finding 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.
Once your LOA is signed and quotes come in, the next step is choosing the right deal. The guide to fixed vs variable energy rates helps you understand what you're comparing. And if you're new to the process, how to switch business energy supplier in the UK walks you through every step from quotes to completion.