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Industry insights

Take care when signing a Letter of Authority (LOA)

Amanda Byrne

6th May 2020

In the energy industry, a Letter of Authority (LOA) essentially enables a third party intermediary (TPI) to speak to and negotiate with Suppliers on the customer’s behalf.

In cases, where the customer has given the TPI the authority to sign a contract on their behalf, it is important that;

  • LOA is signed by someone in a position of authority, e.g. Director, Procurement Manager, Head of Finance or Facilities Manager.
  • The customer should provide supporting written confirmation to the TPI/Supplier.
  • The LOA should specify the TPI’s authority to “Sign” contracts on behalf of the customer.
  • The LOA should be dated within the last 6 months when being used as authority to sign a contract on behalf of the customer.
  • If commission is referenced in the LOA, the TPI should explain to the customer and put in writing what this is and how it is paid to them.

If you need any more help with understanding your LOA, or anything relating to you utility portfolio, then give us a call


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