A Letter of Authority or LOA is a document which allows an intermediary to access information about a customers energy accounts. If you are a new customer, it allows the intermediary to obtain information about the rates currently being charged and the contract end dates. .
The document also allows for a credit check to be made prior to agreeing a contract. This is important since Energy suppliers accept new customers based on risk. If a customer does not have a matching credit score for the supplier selected, then the contract may be rejected or have special terms imposed.
The LOA also allows the intermediary to give termination notice to your existing supplier, an important part of switching, since failure to notify the existing supplier will result in them objecting to the transfer. A successful objection could result in the customer paying excessive rates for energy, as the existing supplier may charge deemed contract rates or possibly roll over the contract for another year.
The LOA is particularly useful if you want your energy consultant to negotiate more complex trading terms on your behalf, for example, a monthly payment to clear a debt, or an incorrect bill.
An LOA can be rescinded at any time of the customers choosing.
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