What’s a LOA and why sign it?

Words by Zembl

Before our Commercial & Industrial (C&I) Energy Consultants can go to market to secure competitive rates for our C&I customers, they first need to sign an LOA (Letter of Authority). While this might sound scary, it really isn’t – in fact, it’s quite normal, and not just for the energy procurement industry. Here are all your LOA questions answered.

What’s a Letter of Authority (LOA)?

A Letter of Authority (or LOA) is a signed document used to reach an agreement between three or more parties. It’s essentially a permission slip you give to another party that lets them speak with other businesses on your behalf, within legally agreed parameters.

Are LOAs just used by Zembl energy brokers?

No, in fact, they’re an established norm amongst many other industries, from medical services to the financial sector. For example, you could be asked to sign an LOA to allow a third party of your choosing to do things like:


  • Switch your energy providers.
  • Switch your business insurance policy.
  • Switch your broadband or phone service.
  • Transfer your current account from one bank to another.

What does an LOA allow a Zembl energy broker to do?

In energy, an LOA is needed before a broker can speak with your energy provider about switching. The LOA itself will clearly lay out the permissions you are giving to the energy broker when you sign. Typically, you’ll be giving them the green light to:

  • Request historical information – this includes your energy consumption, the prices you’ve been paying, and your contract end dates.
  • Find a better deal – including asking for energy prices from different suppliers, based on your details to negotiate for better rates.
  • Do the switching legwork – with an LOA, your broker can go ahead and complete the paperwork to officially start switching providers.
  • Handle queries from your current supplier – brokers can also deal with  
    any service or billing queries on your behalf.
  • Organise appointments for you – these include things like meter installations and any maintenance or upgrades required.
  • Go into bat with your retailer if you’ve got an issue with your retailer, an LOA means your energy broker can handle it (and deal with all the back and forth that might happen as a result).

How long is a Letter of Authority (LOA) valid for?

A Letter of Authority (or LOA) is usually valid for 12 months, but not always. The LOA will always state clearly how long they’re valid for on the letter itself, so make sure you check for it when you sign. Once your LOA expires, you’ll need to sign another one before your broker can continue to act on your behalf.

Who can sign a Letter of Authority?

Since a Letter of Authority is a legal document representing the permission you’re granting to others, you’ll need to put your signature on it! If you’re giving permission on behalf of a company, you should get the signature of the business owner or a director of the company on the LOA.

For Zembl Energy Consultants, signing an LOA is the kick-off to our obligation-free energy tendering service

When you get started with Zembl energy procurement, one of the first things your Energy Consultant will request is for you to sign an LOA. It’s not signing your life away; it’s just giving them permission to do a whole lot of time-consuming things for you, including tendering your energy, finding the best deal and arranging the switch. Plus you can sign digitally using DocuSign, so there’s no need for annoying printing, ink and scanning.

Like to give your permission for a Zembl Energy Consultant to find your business more competitive energy rates? The first step is to request a call-back below.

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