TPI Letter of Authority (LOA): What they are, why you need one and how to access our supplier-approved template

Whether you’re new to energy brokering, or already have years of experience under your belt, a letter of authority is a crucial document, without which (alongside membership of a recognised ADR Scheme), you’re unable to do business.  

In this article, we’re going to take a deeper dive into why a Letter of Authority (LOA) is such an important document, when you need to use one, and how to create one that’s acceptable by your preferred suppliers. 

We’ll also point you in the direction of our fully-compliant, supplier-agnostic Dual Branded Letter of Authority – which covers you for brokering deals with all of the UK’s leading energy and water companies.  

What is a Letter of Authority (LOA)? 

A Letter of Authority (LOA) is a legal document that authorises a third party to communicate with energy suppliers on behalf of another person/business, without the need for direct involvement from the business owner. 

For energy (gas and electricity), LOA requirements are governed by Ofgem. For water, you need to use Ofwat’s TPI Letter of Authority template.

Put simply, as a broker acting on behalf of a customer, the retailer (energy/water supplier) needs written confirmation from the customer that you are working on their behalf, the extent of your authority, and how your fees/commissions are being paid. 

A Letter of Authority enables a broker to act and correspond on behalf of their customer in order to: 

• Request and receive account information, including consumption history and contract details  
• Negotiate with energy suppliers for better deals  
• Handle billing queries and complaints with the current supplier 
• Submit meter readings and collect energy consumption data 
• Organise maintenance or upgrade appointments 

Level 1 vs Level 2 Letter of Authority 

A Level 1 LOA can issue term notices on behalf of customers and handle renewal contracts. However, it does not permit a broker/third party to: 

• Enter into new supply agreements without explicit approval from the business 
• Switch suppliers without further express permission from the business 

A Level 2 LOA grants an energy broker more extensive powers than a Level 1 LOA, providing them with the authority to make changes or sign new contracts without the customer’s knowledge – including the power to implement auto renewals. 

Key elements of an acceptable Letter of Authority 

Although energy suppliers often have slightly different requirements in what they deem an acceptable LOA, there are some common components that are always necessary for inclusion. 

• Proper identification: Include the full registered company name, address, and postcode of the business 
• Clear scope: Explicitly outline the rights, responsibilities, and tasks delegated to the third party (energy broker/consultant) 
• Explain how the third party’s fees are paid: Clearly outline the payment structure for the third party’s services, specifying who is responsible for paying the fees (e.g., the business, supplier, or another party) and the method of payment (e.g., direct billing, commission, or deduction from savings). Ensure this information is transparent.
• Duration: Specify the period of validity (which will typically be 12 months from the date of signing) 
• Authorised signature: The LOA must be signed by the business owner, company director, or a specifically designated signatory 
• Current date: Include the date of signing (this needs to be within the last 12 months for the LOA to be valid) 
• Third-party details: Clearly state to whom authority is being delegated, including their company address and contact information 

Clear, simple language and easy-to-understand terms should be used to avoid ambiguity. In some instances, suppliers may also require that the LOA be typed on official company stationery with the business name and logo. 

Once written, you should review and verify the LOA document, to confirm all details are correct and complete before submitting your tender. 

Broker’s Letter of Authority Template

At OnlineDIRECT we provide a specifically worded Dual Branded LOA (DBLOA) template which we recommend all our brokers use and provide as a free template, downloadable from our energy tendering platform (energyengine®), at anytime. 

This LOA is accepted by all of the UK’s leading energy suppliers* and is mapped to enable completion via the energyengine® when using the auto-complete function. This template can also be completed using the DocuSign facility within the energyengine® and the contract. 

*Some suppliers require an LOA to be on Customer headed paper and details can be found on relevant Supplier Pages within the energyengine® where this is the case. Using this template allows Brokers to act as an introducer, but does not give authority to sign contracts on customer’s behalf. 

Who needs to sign a LOA? 

Whether using OnlineDIRECT’s DBLOA, or your own, an LOA should be completed and signed by the customer as follows: 

• Sole Trader – the DBLOA should be completed as First Name Last Name t/a Business Name, for example, Charles Jones t/a Charlies Chippie, and signed by the Sole Trader  
• Partnerships – The DBLOA should be completed as Partner First Name, Partner Second Name & Partner First Name, Partner Second Name t/a Business Name, such as Charles Brown & Robert Brown t/a C & R Brown
• Limited Company—The DBLOA should be completed with full Limited Company details, including the Company House registration number, and signed by the authorised company director

As general best practice, we recommend checking and validating all information before contract submission to avoid many contract processing queries. In all cases, we advise that you check how the customer is currently set up with their existing supplier to ensure no problems are encountered when obtaining information or renewing a contract. 

Need more support with Energy Contracts? 

As a member of our Broker Network, brokers also have access to a specialist Broker Support Team, who are on-hand to assist with a wide range of other pre-sales checks/validations, including: 

• EAC/AQ – Accurate consumption is essential for pricing; many suppliers have volume-banded products and incorrect consumption could lead to a rejected contract 

• Contract End Date – An incorrect contract end date will result in a rejected contract 

• Soft Credit Checks (indicative only) – In many cases, credit check failures can be avoided by doing an indicative check first. However, suppliers’ credit checks are ‘hard credit checks’, and the outcome may vary from an indicative ‘soft credit check’ 

• Site Address – An accurate site address is required to meet supplier/industry requirements. Incorrect details could result in a query and delay the contract submission 

• Change of Tenancy (COT) – Where a change of tenancy has occurred, the current supplier must be notified before submitting a contract. Failure to register the COT/notify the supplier will likely lead to an objection being raised when the contract is presented. (Supplier-specific COT Form templates are also available to download from the energyengine®) 

Not currently working with us and want to learn more? Find out more about our range of Broker Support Services and applying to join our Broker Network.