When switching business energy providers using an energy broker, you have to sign a Letter of Authority. Remember that a Letter of Authority gives your business energy broker permission to work on your behalf.
The letter can also specify the activities your energy broker can manage. This allows your business energy broker to contact potential or current business energy providers. An energy broker cannot make decisions without your consent, meaning you still have the final say when it comes to all the decisions taken. This page discusses why a Letter of Authority is important when switching energy suppliers.
Signing a Letter of Authority
A business energy broker requires a Letter of Authority to ask for information from your current business energy supplier. This allows them to find for you the best energy deals that match your business model. When you switch with a business energy broker, they can manage the whole process for you. But a business energy broker requires a Letter of Authority to do this.
It’s worth mentioning that there are various types of Letter of Authority. But most energy brokers usually want the level 1 Letter of Authority. This letter allows them to access basic information so that they can find you a better business energy deal. This can include your meter readings, your current energy contract, and your energy usage.
There is also a level 2 Letter of Authority that allows your business energy broker to access a wide range of data. A good energy broker can also find a new business energy contract for you. Regardless of the type of Letter of Authority, it’s a good idea for an energy broker to seek consent before confirming a new business energy contract.
Writing a Letter of Authority
You should note that there is a standard language and format needed for a Letter of Authority. Therefore, if you want to write a Letter of Authority, you can ask your potential energy broker to give you their official template.
The letter needs to be accurate, so you should avoid writing one from scratch. A good business energy broker can help you to ensure that it’s correct before its submission. A Letter of Authority should be written on a business-headed paper. It can also include your full registered business name, postcode, and address. The address needs to match the registered business address. You should also sign the Letter of Authority dated in the past 12 months.
You don’t need to use a lawyer when you decide to write a Letter of Authority. Many business owners utilize a standard template when writing a level 1 Letter of Authority. When you submit a signed Letter of Authority, the energy broker can process it. This may take a couple of days, so you just need to wait until they process it. The good thing is the energy broker can start comparing business energy suppliers or tariffs right away. Once they have identified the right business energy supplier, they can contact you.