Why an energy broker needs a letter of authority when you decide to switch energy supplier

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Sometimes, you need to switch energy suppliers so that you can find better energy deals. Remember that the money you pay for the high energy bills can affect the bottom lines of your business. Unfortunately, some business owners are worried about switching energy suppliers because of the challenges involved with the process. 

Thankfully, energy brokers have now made it easier to switch energy suppliers. But before an energy broker can help you switch energy suppliers, you need to give them a letter of authority. Without this letter, it’s impossible to switch energy suppliers. This article discusses why an energy broker needs a letter of authority when you decide to switch energy suppliers.

A letter of authority 

A letter of authority is simply a document that two or more parties use to reach an agreement. In other words, it’s a special permission slip that you can give an energy broker so that they can speak with energy suppliers for you, but within agreed limits.

Quite often, a letter of authority is used by energy brokers, though they are not specifically used in the energy sector. This legal document also applies to several industries, such as the financial sector and medical services.

Simply put, a letter of authority can allow a third party to do a couple of things. These include switching your energy suppliers, switching your phone or broadband service, switching the business insurance policy, and transferring the current account from your current bank to another. 

In the energy market, a letter of authority is crucial because it allows your energy broker or comparison site to contact your energy supplier about switching. This document lays out the permissions given to your energy broker. Click here to learn more about the energy switching process.

In most cases, there are several permissions included in a letter of authority. One of them is the request for historical information. A letter of authority allows your energy broker to request your energy supplier for current and historical information. Therefore, an energy supplier can give your energy broker the energy prices you were paying, your energy consumption, and the expiry dates of your contract.

Your energy broker can also be permitted to find a better energy deal on your behalf. This means they can ask for energy tariffs from several energy suppliers. They can do this based on your information, so they can negotiate for a better energy tariff by comparing the best energy deals from other energy suppliers.

An energy broker can also be allowed to start your switch. With a letter of authority, your energy broker can handle all the paperwork to start switching your current energy supplier to another one. They can also simply confirm a renewal with your current energy supplier.

Also, a letter of authority can allow the energy broker to handle any queries raised by your current energy supplier. An energy broker can deal with billing queries or any service on your behalf. Therefore, you don’t have to contact your energy supplier directly.

A letter of authority also allows your energy broker to schedule appointments. This means they can organize with your energy provider any appointments for upgrades or maintenance. This can include meter installations and boiler services. 

An energy broker can also submit for you meter readings. A letter of authority allows a third party to send meter readings on your behalf. They can also collect energy usage data from your energy supplier.

Above all, a letter of authority allows an energy broker to raise a complaint. If you think that the current energy supplier is not fulfilling their promises, then a letter of authority allows your energy brokers to complain on your behalf. 

Writing a letter of authority

A letter of authority can be valid for at least 12 months or more. This document will show how long they are valid, so ensure that you indicate this validity. If a letter of authority is valid for less than 12 months, then it should be clearly stated on the document. When the letter of authority expires, you have to sign another one before your energy broker can continue working on your behalf. 

Because a letter of authority is considered to be a legal document that represents the permission you are giving to others, you must sign it. If you want to write a letter of authority for your company, then a director of the company or business owner needs to sign the letter of authority. You should also make sure that you utilize a paper that has a letter heading or logo of your company. This can save time doing background checks. 

In most cases, you don’t have to write this letter of authority yourself. Your energy broker can send an already written letter of authority to you to sign. But you need to read it carefully, and can ask them to remove any clauses you don’t want. On the other hand, if you desire to write your letter of authority, then there are several things you should include. 

A letter of authority should have the addresses, name, and your contact details. You should also include the contact details of your energy broker. You should also mention which person or business is granting this permission to the energy broker. 

Other things you should include are the details of authorization, level of access, and the validity of the agreement. You should remember that the letter needs to be concise and clear. As explained earlier, a letter of authority can be utilized as legal evidence in case there is a dispute between you and the energy broker, so it needs to be clear.

That said, a letter of authority can play a huge role when it comes to switching energy suppliers. If you want to use an energy broker to assist you to compare and switch energy suppliers, then you have to sign this letter of authority so that they can work on your behalf. This lets the energy broker deal with the energy suppliers.

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