When you are faced with the constant demands of running a business, sourcing good and cost-effective business energy deals can be a hassle. Finding the time for business energy comparison can be tough. Fortunately, there are a number of third-party consultancies that you can pay to manage your business energy on your behalf. They can find the perfect deal and negotiate tariffs, without you even lifting a finger. However, in order for you to hand over this responsibility, you need to issue a Letter of Authority. This guide explains what this is, and the dos and don’ts when looking to sign this all-important document.
In a nutshell, a Letter of Authority (LoA) is signed by a business in order to give formal permission for a third-party to liaise with energy suppliers on behalf of the business. It is a recognised legal document used in many different industries – not just in the energy sector. Without a Letter of Authority, your chosen consultant cannot collect data regarding your site and meter portfolio, deal with suppliers, renew or change energy contracts, or find you a better business energy deal. Keep in mind that a separate, additional Letter of Authority is typically required for water services.
Many consultancies will offer their own template for the Letter of Authority. While you may be relieved that the document has been drafted for you, and it is tempting to just sign and give your time to something more befitting the growth of your business, you should always read through the terms and conditions carefully. You do not want to be agreeing to problematic terms just because a ‘ready-made’ document is convenient. For example, you should never give consent for your consultant to switch energy suppliers and agree to new contracts without your full consent. You need to make sure that your business will remain in control and in the loop regarding future negotiations.
To be on the safe side, you might want to craft the document yourself. You can find many reliable templates online which you can adapt for your needs, add the letterhead of your business, and then ask your consultant to sign. If they are not happy to do this, then you should be suspicious, and look into finding a different, reputable consultant. Many consultancies will ask you to write a Letter of Authority yourself, often to assure you, their customer, that you are in complete control. Don’t panic – online templates are an excellent resource that may just save the day! Just make sure you read it through thoroughly so you know what you are agreeing to, and always keep a copy for future reference.
If you are not comfortable using an online template, and want to write the letter yourself from scratch, you may want to glance at them anyway for a bit of guidance.
In summary, using a consultancy can be a great way to be confident that your business always has the best energy deal possible, relieving all stress and allowing you to focus on the day to day demands of running a business. Just make sure that when signing a pre-written Letter of Authority, you have read the terms and conditions thoroughly.