Why are LOAs used to switch business energy suppliers?
Switching your current energy supplier can be difficult for many business owners, which is where business energy brokers come in. An LOA will give your broker the means to act on your behalf and will declare exactly what they can and cannot do for you.
A letter of authority can be used to request historical account information from your current energy supplier which may be needed to switch supplier. Most new supply agreements that involve energy consultants will require an LOA.
There are two different types of LOA, these are:
- Level 1: This is usually used to access energy supplier information such as your current energy consumption data, your current contract and any meter readings that are required.
- Level 2: This will give third party access to almost all your energy supply data. It also allows them to ask wholly on your behalf.
Most energy brokers will only require a level 1 LOA as this is what's usually needed to switch suppliers and compare a range of business electricity deals. Always check what level your business energy broker needs and whether or not you trust a third party enough to supply them with a level 2 LOA.