Business energy guide

What is a Letter of Authority in business energy?

A Letter of Authority — commonly shortened to LOA — is a document used in the UK business energy market to allow an authorised adviser or broker to communicate with suppliers on behalf of a business. It is often used during contract reviews, renewal checks, billing investigations and supplier information requests.

Last reviewed: 15 May 2026

Part of the CNG Switch Business Energy Guides library for UK businesses that want clearer contract visibility and adviser-led energy support.

Quick answer

A business energy Letter of Authority allows an authorised third party to speak to suppliers and request information on behalf of a business. It is commonly used to access contract dates, billing details, meter information, MPANs, MPRNs, usage data and renewal information.

A standard LOA is usually for communication and information gathering. It should not be treated as a contract commitment unless the document specifically says so. Businesses should always read the wording carefully before signing any authority document.

What does a business energy LOA do?

A Letter of Authority typically allows an authorised adviser or broker to request information from an energy supplier on behalf of the business. This helps the adviser understand the current position before giving guidance or reviewing contract options.

Depending on the wording and supplier requirements, this may include:

• Current contract details.
• Contract end dates.
• Meter information.
• Historical usage data.
• Billing information.
• Renewal dates.
• Supply details.
• MPAN and MPRN records.
• Standing charges and unit rate information.
• Supplier account numbers.

An LOA does not automatically transfer supplier responsibility or ownership of the account. It simply confirms that the named adviser has authority to communicate with the supplier within the scope of the document.

Why suppliers require a Letter of Authority

Energy suppliers need confirmation that the business has authorised someone to discuss account information on its behalf. Without that confirmation, suppliers may refuse to release contract or billing information to a third party.

LOAs help suppliers:

• Protect account data.
• Confirm authorised access.
• Maintain compliance procedures.
• Verify business instructions.
• Reduce the risk of unauthorised account discussions.
• Confirm who can request supplier-held information.

This is particularly important where a business has multiple sites, several suppliers, different billing contacts or historic contract records that are not easy to locate internally.

Does an LOA mean you are locked into a contract?

No — not usually. A standard Letter of Authority is generally intended to authorise communication and information gathering rather than commit the business to a new energy contract.

However, businesses should always read documents carefully before signing anything. Different suppliers, brokers and advisers may use different documentation structures and wording.

Businesses should check:

• What authority is being granted.
• How long the authorisation lasts.
• Whether exclusivity clauses exist.
• What information can be requested.
• Whether the document allows only information gathering or wider instruction.
• Whether cancellation or withdrawal wording is included.

The safest approach is simple: read the wording, ask questions if anything is unclear and keep a copy of the signed document.

Why LOAs are common during renewals

Contract visibility becomes increasingly important during renewal periods. Suppliers may hold the information needed to confirm whether a business is approaching renewal, already out of contract or exposed to rollover terms.

Businesses often need to confirm:

• Contract end dates.
• Notice periods.
• Current pricing structures.
• Standing charges.
• Meter arrangements.
• Operational usage.
• Current supplier account details.

A Letter of Authority allows these discussions to happen more efficiently between suppliers and authorised advisers. This can help businesses improve visibility before renewal windows become urgent.

Related guides: business energy contract renewal guide, why businesses should track renewal dates and review energy bills before renewing.

Why businesses often use adviser-led support

Commercial energy contracts can become difficult to manage internally, particularly for businesses operating multiple sites, handling several suppliers or trying to understand historic contract records.

Adviser-led reviews can help businesses understand:

• Current contract position.
• Renewal exposure.
• Billing structures.
• Meter setup.
• Contract timing risks.
• Potential rollover or out-of-contract exposure.
• Whether supplier records match business records.

Businesses in sectors such as:

• Hospitality.
• Retail.
• Manufacturing.
• Care homes.
• Warehousing.
• Offices.

often manage more complex operational energy requirements and may benefit from clearer contract oversight.

What information is usually needed on an LOA?

Supplier requirements vary, but many business energy Letters of Authority require enough information to identify the account and confirm that the person signing has authority to act for the business.

Many LOAs include:

• Business name.
• Supply address.
• Billing address.
• Supplier account number.
• MPAN or MPRN details.
• Authorised contact details.
• Company registration information where required.
• Signature and date.

Some suppliers may also require confirmation from authorised directors, account holders or named contacts. For multi-site businesses, the LOA may need to cover several supply addresses or account references.

Related guides: what is an MPAN number? and what is an MPRN number?.

How long does a Letter of Authority last?

LOA durations vary depending on supplier and adviser processes. Some documents include a clear expiry date, while others may apply for the duration of a review or a defined contract period.

An LOA may remain valid for:

• A fixed number of months.
• The duration of a review process.
• A specific contract period.
• Until withdrawn by the business, depending on wording.

Businesses should always check:

• The expiry date.
• Any cancellation provisions.
• Whether ongoing authority applies.
• Whether the authority is limited to information gathering.
• Whether the LOA covers one site or several accounts.

Why contract visibility matters

Many business energy issues occur simply because contract details are unclear internally. An LOA can help authorised advisers obtain supplier-held information that may not be easy for the business to locate quickly.

Businesses sometimes lose visibility over:

• Contract end dates.
• Renewal windows.
• Supplier notice periods.
• Current pricing structures.
• Standing charges.
• Meter arrangements.
• MPANs and MPRNs.
• Historic usage information.

Improving visibility early often reduces the likelihood of:

• Rollover contracts.
• Out-of-contract pricing.
• Unexpected billing changes.
• Missed supplier notices.
• Renewal decisions being made with incomplete information.

Related guides: business energy rollover rates explained and out-of-contract business energy rates explained.

Why adviser-led reviews matter

Adviser-led reviews can help businesses make sense of supplier-held data, internal records and current invoices. The aim is not simply to compare rates, but to create a clearer view of the current contract position before decisions are made.

A review can consider:

• Current supplier arrangements.
• Contract end dates and renewal windows.
• Standing charges and unit rates.
• Meter setup and supply numbers.
• Billing structures.
• Operational usage patterns.
• Potential rollover or out-of-contract exposure.

CNG Switch is not a comparison website or instant quote platform. Our adviser-led approach focuses on contract visibility, renewal timing, billing clarity and practical business energy support.

FAQs

Need help reviewing a business energy contract?

If you want clearer visibility over your current supplier arrangements, upcoming renewal position or billing structure, CNG Switch can help review your current setup.

The review focuses on contract visibility, supplier information, renewal timing, standing charges, meter details and whether your current arrangement still reflects how the business operates.

No guaranteed savings. Available options depend on supplier criteria, usage profile, contract timing, meter details and business circumstances.