Understanding the Basics of a Letter of Authority

Most of the UK Business is always looking to reduce the cost of energy . Whether you're after the best business prices for electricity, looking to compare gas prices for business, or on the hunt for business gas quotes, there’s a vital step you’ll need to take before switching providers — the Letter of Authority (LoA).

So, what exactly is a Letter of Authority, and how does it help you become the smartest energy business on the block?

What Is a Letter of Authority for Business Owners?

If you're looking to switch your business energy supplier or get better rates on your gas and electricity, you’ve probably come across the term Letter of Authority — often shortened to LOA.

It might sound like legal jargon, but don’t worry. A Letter of Authority is a straightforward document that plays an important role in helping businesses manage their energy contracts more easily.

Why Is an LOA Important for wholesale electricity prices?

To compare commercial gas prices or electricity tariffs effectively, brokers need access to your current energy usage and terms and how rising energy costs are impacting wholesale businesses.As long as you do not have signed LOA they cannot legally obtain this information or speak with current suppliers .That means no switching, no savings, and no chance to access business electricity deals that might significantly reduce your overheads.

Once the LOA is signed and submitted, your broker can begin the process of negotiating better business energy prices, issuing termination notices, and comparing offers from leading business electricity suppliers.

What Does It Look Like?

Most brokers provide a standard LOA template. It’s usually:

• Printed on your business letterhead
• Includes your registered business name and address
• Signed by an authorised person (like a director or manager)
• Clearly states what the broker can and cannot do

How Long Is an LOA Valid?

Typically, an LOA is valid for 12 months. This gives your broker enough time to handle your current contract, explore the best business electricity prices, and ensure a smooth transfer. After this period, a new LOA would need to be signed if further work is required.

What Happens After You Submit an LOA?

Once your LOA is received, the broker can begin sourcing the most competitive business cheap electricity and gas rates tailored to your needs. They can also compare business energy guides across multiple suppliers, ensuring you’re not overpaying for essential utilities.

You’ll be assigned an energy expert who can walk you through the options — including fixed, flexible or green tariffs — depending on your business goals.

How to Write or Submit an LOA

Most brokers will provide a pre-drafted Letter of Authority. All you need to do is print it on company letterhead, have it signed by an authorised signatory (usually a director or owner), and send it back. Once accepted, the process of switching your supplier begins, allowing you to focus on running your business — not chasing energy quotes.

Final Thoughts

In the competitive world of UK business, staying lean on costs can give you the edge. And one of the smartest ways to do that is through a commercial energy switch supported by a valid Letter of Authority.

Whether you're after wholesale electricity prices services or trying to reduce gas overheads, the LOA is your starting point for accessing lower business energy prices without the admin burden.

If you’re ready to become the smartest energy business, make sure you understand — and use — the Letter of Authority to unlock the best business electricity deals on the market.

Let us do the legwork for you. Sign your Letter of Authority today and unlock access to the best business electricity and gas deals on the market — without the admin headache.