What it permits
A letter of authority allows a broker to request your consumption data, contract end dates and current rates from your supplier. That data is what makes accurate quoting possible — without it, every price is a guess based on an assumed profile.
What it does not permit
A standard LOA does not allow anyone to sign a contract, switch supplier or change your payment method on your behalf. Any authority that includes those powers should be read carefully and, in most cases, declined.
Before you sign
Check the expiry date (six to twelve months is normal), confirm it names one broker rather than a panel, and ensure it states that no contract can be entered without your written approval.
Want this reviewed for your business?
Send us a recent bill and a consultant from our Cardiff office will tell you, honestly, whether you are paying more than you need to.