If you have ever asked a broker for a business energy quote, the first thing they will send you is a Letter of Authority (LOA). It looks bureaucratic but is essential: without an LOA, no UK supplier will release your historical usage data, and no comparison can quote you firm prices. This guide explains exactly what an LOA does, what it does not do, how long it lasts, and how to spot suspect LOA practices.
What is a Letter of Authority for business energy?
An LOA is a written authorisation, signed by a director or authorised signatory of a UK business, that lets a named third party act on your behalf with your current and prospective energy suppliers. The “third party” is usually a business energy broker, a TPI (third-party intermediary) or directly the new supplier you are switching to.
Specifically, an LOA gives the named party the right to:
- Request your historical 12-24 month consumption data (kWh) from your current supplier.
- Request your contract end date and current unit rates.
- Receive your MPAN/MPRN registration data from the central industry databases.
- Receive quotes on your behalf from prospective suppliers.
An LOA does not let the third party sign a new contract on your behalf, change your direct debit or alter your existing contract. Those actions need a separate signature on the new contract itself.
Why do business energy brokers need an LOA?
Without an LOA, brokers can only quote you on estimated consumption you provide. Suppliers know this and price estimated quotes more conservatively (i.e. higher) to cover their downside risk. With an LOA, the broker pulls your real 12-month consumption from the central data flows, which lets suppliers price your meter more accurately — and usually cheaper.
What information is on an LOA?
A standard UK business energy LOA includes:
- Company name, registered address and company number.
- Site address(es) and supply MPAN(s) / MPRN(s).
- Name of the third party being authorised.
- Scope of authority (data only, or data + contract negotiation).
- Validity period (usually 6 or 12 months).
- Signatory name, role, date and (sometimes) wet signature.
How long is an LOA valid for?
Most LOAs are valid for 12 months from the signature date, though some suppliers cap them at 6 months. After expiry, suppliers will reject data requests using that LOA and you have to sign a new one.
You can revoke an LOA at any time by writing to the broker and your current supplier.
LOA red flags — when to be suspicious
- Open-ended LOA with no expiry date. Decline.
- LOA that includes “contract authority” letting the broker sign new deals on your behalf without further sign-off. Decline unless explicitly intended.
- Multi-supplier LOA covering meters or sites you do not own. Refuse.
- Broker that will not name themselves or asks you to sign a blank LOA. Walk away.
- LOA bundled with a “verbal contract” recording. Some brokers use a verbal yes-then-LOA-signed flow as a contract trigger. Always insist on a separate written contract for any switch.
LOA vs Bill Authority — what is the difference?
A “Bill Authority” or “Bill Consent” is a narrower version — it lets a third party see your bills but not act on your behalf. Most UK brokers use a full LOA; consultants offering audit/billing checks sometimes use a bill-only consent.
Frequently Asked Questions
A standard time-limited, broker-named, data-only LOA is safe and standard practice. Avoid open-ended or contract-authority LOAs unless you fully understand what you are agreeing to.
Yes — you can authorise several brokers to obtain quotes simultaneously. This is a good way to compare broker offers without committing to one early.
No. A standard LOA only authorises data access and quote generation. You always need to separately sign a new energy contract before any switch happens.
Write to the broker holding it and your current energy supplier stating you revoke the LOA dated [date]. Most brokers will action immediately; suppliers are required to action within 5 working days.
If you go direct to a single supplier they generally do not need an LOA — they can pull your data using their own credentials once you sign their contract. LOAs are needed for brokers, comparison sites and TPIs acting on your behalf.
Need a quick comparison? Get a free 60-second business energy quote — we send you our standard 12-month, data-only LOA and let you sign or decline before any data is pulled.
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