Template letter of authority
Letters of authority (LoA) are legal documents that enable a third party to act on your behalf.
All legal documents should be read and understood before signing and a letter of authority is no different in this respect.
At Control Energy Costs we often discover that companies have quickly signed a letter of authority without fully understanding the implications of what they are allowing a third party to do on their behalf and therefore we thought this would be a good topic to cover.
A letter of authority is usually valid for 12 months.
Unfortunately, we often see letters of authority from energy brokers that enable them to enter energy contracts on behalf of a client, terminate agreements and switch suppliers. This can be a bit like passing them your credit card and pin number and should be avoided at all costs!
No energy broker needs to be able to do this; as a business, you should always be signing contracts yourself and be fully in control of the sanctioning process.
We thought it might be helpful to include a link to our template letter of authority and this can be viewed below.