WHAT IS A LETTER OF AUTHORITY (LOA)?
FREQUENTLY ASKED QUESTIONS
A Letter of Authority (LOA) is a legally binding document that allows a third party broker or consultancy, permission to act on the behalf of a business. The most popular formations being a Self-employed owned business, a company formed and registered at Companies House: a Private Limited Company, a Public Limited Company, a Limited Liability Partnership, and a Limited Liability Partnership. Other notable forms are: a Mutual Public Registered Society or a Charity Commission Registered business.
Disclaimer: An authorized person who acts on the behalf of a company MUST be careful with agreeing to a verbal or signing a written Letter of Authority. As this is a legally binding and enforceable document, there can be financial ramifications if you are not fully aware of what you have agreed to.
WHY SHOULD YOU BE CAREFUL SIGNING A LETTER OF AUTHORITY (LOA)?
A Letter of Authority can be a legal minefield, depending on the clauses and permissions contained within the document.
A professional broker or consultancy; will always undertake due diligence, request consent from an authorized person,
and have safeguards in place (SEE: VULNERABLE PERSON POLICY). An unscrupulous third party will request that you sign
a Letter of Authority without a copy of their Terms and Conditions (SEE: NSG TERMS AND CONDITIONS), will demand
exclusivity, place you under due duress, and may manipulate you to sign contracts on your behalf. We would recommend
not signing the document or providing your verbal authority, and ask the company to remove your details from their
WHAT DOES A LETTER OF AUTHORITY (LOA) ALLOW A COMPANY TO DO?
A Letter of Authority, as previously mentioned; is a legally binding document, and due to the provisions of the Data Protection
Act, a supplier will only act if it has received the authority to disclose information and data about an account. In all instances, the document should only ever be signed in black ink or via a digital signature.
Consumption Data (energy used in the business)
Contract End Date
And other important information ...
Disclaimer: If you have dealt with an unscrupulous broker or consultancy; you may be unaware that depending on the clauses
of the written or the verbal consent you have agreed to; they are legally able to enter you into any energy (or other) agreements that they wish. This can include a high unit rate (i.e. between 18p to 29p per kilowatt (kWh), a high standing charge (i.e. higher than £0.50 per day), and a long-term deal (between three to five years).
WHAT MAKES YOUR LETTER OF AUTHORITY (LOA) DIFFERENT?
NSG Energy (and our affiliated companies) are different from other brokers for a number of reasons:
Our Due Diligence on every business we work with - to meet business needs and financial budgets;
Our Full Transparency - of our fees and payment methods,
Our Professional Standards (tied to Financial Conduct Authority)
Our Professional Letter of Authority - agreed by suppliers
THANK YOU FOR YOUR CANDOUR, WHAT DO WE DO NOW?
We would need the following documentation from your business:
Two Recent Bills - within the last 6 months (if based on actual readings or Smart Meter Readings);
Site List - if you have more than two sites in the United Kingdom;
A Letter of Authority to collate information, to present our findings and new tariffs;
Signed Contract(s) with the authorized signature of the decision-maker or their representative
WE HAVE OTHER QUESTIONS
If you need further assistance, we would be more than happy to help you:
Please send an email to email@example.com;
Provide a voicemail on 07383 990742, with a clear message confirming your name, business, and a contactable telephone number in which to reach you;
Write to Us at: 76 Hepscott Terrace, South Shields, Tyne and Wear, NE33 4TJ
WHAT IS A LETTER OF AUTHORITY (LOA)?