Exploring the Letter of Authority (LOA) with Toucan Green
In the bustling world of business, managing energy concerns can be a complex and time-intensive endeavour, particularly when your primary focus should be on growth and client satisfaction. Enter the Letter of Authority (LOA), a crucial legal document that grants a third party, or ‘agent’, the power to manage your energy supply within a specified scope.
A common scenario for utilising an LOA is when a business partners with a commercial utility broker like Toucan Green. This collaboration is aimed at streamlining bill management or facilitating a switch in business gas or electricity suppliers.
The Role of an LOA in Energy Supplier Transition
For businesses looking to change their energy supplier, a practical solution is to work with a commercial utility broker. Toucan Green specializes in market analysis to secure the best energy deals and coordinates with current suppliers. To effectively represent the business, Toucan Green requires an LOA.
Varieties of LOAs
There are two main types of LOAs:
- A Level 1 LOA allows access to fundamental information such as current energy usage, existing contracts, and meter readings.
- A Level 2 LOA expands this access, giving Toucan Green the ability to view all energy supply data and the authority to sign contracts on the business’s behalf.
Duration and Expiry of an LOA
The LOA should specify its validity period, which is commonly six or twelve months. If not explicitly stated, it is typically valid for twelve months from the date of signing.
Who Can Sign an LOA?
The LOA must be signed by someone with proper authority within the business, such as the owner, a company director, or an authorised signatory.
Creating an LOA Without Legal Assistance
Businesses often use a standard template for a Level 1 LOA, which they customise as needed. The letter should be clear and concise in detailing the level of authority granted. While it’s not a legal requirement to have a solicitor draft an LOA, it is advisable to have a legal expert review it before finalisation.
