What is an Letter of Authority (LOA)?

An LOA (Letter of Authority) is a signed document that gives permission for third parties to deal with suppliers on your behalf within agreed limits. ( e.g. make sure your LOA is only level 1.) This document aids us in accessing current information about your energy plans to enable us to get the best rates possible for you. You're probably too busy running your own business to chase up energy suppliers or compare different quotes, so let Purely Energy do it for you!

We need an LOA to:

  • Request & receive current/historical account information, including – Consumption history, supply numbers, pricing details, plan, renewal offer & contract end dates.
  • Allow for a commercial credit check should they be required.
  • Request & negotiate bespoke prices on your behalf.

LOA levels: what are you actually authorising?

Not all LOAs grant the same powers, and this is worth understanding before you sign anything, with any broker.

  • A Level 1 LOA is information-only. It lets the broker gather data, request quotes and handle queries, but every decision stays with you; the broker cannot agree or terminate contracts.
  • A Level 2 LOA goes further, authorising the broker to act on your behalf, which can include signing contracts or serving termination notices without a separate signature from you each time.

Purely Energy works on Level 1 authority. We gather, negotiate and recommend; you decide. If a broker asks you to sign a Level 2 LOA, make sure you understand exactly what they'll be able to do in your name, because a Level 2 in careless hands is how businesses end up in contracts they never knowingly agreed to.

What do we do after the LOA has been signed?

Once you have signed your LOA via DocuSign, we can submit this through the associated supplier portal to attain relevant information and gather the best supplier quotes for your business. We can then contact you with the quotes, let you decide on your desired contract, and get the switch ready for your new contract to go live.

Why do we need to know information about your energy plan?

In order to create an accurate comparison of what our quotes can save you each year, we need to know what you are currently using and paying, it’s as simple as that.

Types of LOA's

Pre-Contract LOA (Quotation Phase)

You will be asked to sign a pre-contract LOA, also known as a ‘quotation phase’ LOA before any energy contracts are agreed upon. This will allow us to gather the necessary information previously mentioned when gathering your quotes. This saves you the bother of being stuck on the phone with your supplier or searching through different bills to get the information; we will just chase it all for you and save you time.

Post-Contract LOA

When you have agreed upon a contract, we will send out a post-contract LOA via DocuSign, alongside your contract for a signature. This is provided alongside your contract when we submit it to the supplier, to show that we have authority to submit it on your behalf. It also allows us to deal with objections, billing queries, and anything else relevant to your contract, on your behalf. We can also use this to generate renewal quotes towards the end of your contract, but don't worry; unlike some brokers, we will never authorise a renewal contract on your behalf unless directly requested to do so.

How long is an LOA valid for?

Our standard LOA document is valid for 12 months unless a client asks for it to be removed sooner. If any LOA lasts longer than 12 months, it will be stated on the letter. Some LOAs last for 24 Months, the length of the contract placed and just until the client asks for it to be removed.

Who can sign an LOA?

The company director, owner, or a specially designated and authorised signatory must sign an LOA.

What is in an LOA?

  • Company name, number, and registered address for limited companies, or a sole trader’s home address.
  • Email address
  • Date signed
  • Full name
  • Position of person signing
  • Signature.

Pros and Cons of Having an LOA

Pros of Having an LOA

  • Access to bespoke prices that are tailored to your business.
  • Time savings—Purely Energy handles all communications with energy suppliers.
  • Accurate energy quotes based on your consumption history and plan details.
  • Expert negotiations on your behalf for the best energy deals.

Cons of Not Having an LOA

  • Limited ability to get bespoke energy prices.
  • Rates may be inaccurate, leading to potential overcharges.
  • Inability to negotiate on your behalf, leading to missed savings opportunities.
  • Increased time and effort required to handle supplier communications personally.

How can Purely Energy help

If you need need help with your LOA Purely Energy has a dedicated to assist throughout the process. Just get in touch or request a quick quote and we'll sort the rest. Contact us on 0161 521 3400 or email info@purelyenergy.co.uk and we'll advise on your next steps.

If you have any suggestions or questions, please get in touch.