Letter of Authority & Notice of Termination explained
- Why does The Energy Desk need a Letter of Authority?
Energy Suppliers require a Letter Of Authority before they will divulge customer information to brokerages and consultancies. This makes sense as you don’t want your details being given out to all and sundry.The Energy Desk is registered with, compliant with and monitored by The Data Protection Act.The information we need is specifically:
- a) For the purpose of Energy Management feasibility surveys suppliers require authority to collect all relevant meter information to produce an accurate report.
- b) Confirmation of current contract end-dates. This is in order that any new contracts start on the correct day and that we can be sure contracts are not allowed to be “rolled over” on disadvantageous rates. Most Energy Suppliers require a minimum of 90 days’ notice before the anniversary of the contract and 89 days is too late.
- c) Confirmation of annual usages. These are actual yearly-billed usages and are quite often substantially different from a customer’s perception.
- d) Confirmation of the Supply Number. Sometimes Suppliers will change the profile of a meter during the life of a contract and should the customer then try and move supplier, the transfer cannot happen as the perceived profile is no longer valid.
- e) Sometimes customers have billing queries and we are happy to look at them, but Energy Suppliers require specific permission from the customer before they (the billing department) will discuss details
- What information can The Energy Desk request?
We will only request the information detailed on the LOA.
- Will The Energy Desk be able to agree contracts using this Letter of Authority for our company?
NO, The Energy Desk will not commit to any contract on behalf of a customer without written consent in the form of a separate signed contract. For a few suppliers prices can be ‘locked in’ on receipt of an email confirming that the prices provided have been accepted by an authorised signatory. In this case a contract would then be sent to the customer under separate cover.
- How long in an LOA valid for?
The LOAs are only valid for 12 months from date of signature unless a specific start/end date has been nominated. We will contact you approximately a month before an LOA expiry date.
- What is a Termination Clause (not always included)?
As part of the terms & conditions for a business energy contract a termination notice period is required by your supplier; this can range from 30 days up to 120 days prior to the contract end date. If a termination is not served during the required period, terms & conditions can be applied and your contract may be extended for up to 2 years, this is called a ’roll-over’ contract. If your contract was to roll over, you would be unable to negotiate any new contracting until the next termination window. (See 1a)To ensure this does not occur, The Energy Desk will issue terminations on your behalf at the anniversary of your contracts.
- Do we have to agree a new contract once the termination has been sent? (if applicable)
NO, you do not have to agree a contract, however if you do not enter into a new agreement you are likely to be charged ‘out of contract’ rates. These rates are generally significantly higher than contract rates, sometimes as much as 3 times more.We would recommend that a new contract is agreed at least 28 days before the end of your current agreement’s end date. This period is required to ensure a smooth transfer of supply should a new supplier be chosen.
- What is Micro Business Status?
The European Commission defines a micro business as one which has fewer than ten employees and a turnover or balance sheet total of less than 2 Million Euros Or An annual consumption of electricity of not more than 100,000 kWh Or An annual consumption of gas of not more than 293,000 kWh If you qualify for this status then please tick the box on the LOA as it provides additional benefits such as:
- a. If you are a micro-business customer and you do not want your contracted rates to be automatically renewed, you can let the supplier know at any point from the start of your contracted rates up until the required termination period of your current contracted rates come to an end.
- b. When a supplier discovers that they’ve undercharged a customer, they can create a bill to cover the amount they have undercharged. This is commonly known as ‘back billing’.
- c. If there’s an issue with your business account that the supplier has not dealt with to your satisfaction, or has still not been sorted out after eight weeks, or if the supplier has issued you with a letter telling you their final position, you may be able to bring a case to the Ombudsman Services Energy. Energy Ombudsman contact details Energy on 0330 440 1624 (Textphone 0330 440 1600), or online at www.os-energy.org.
- Completing the LOA
The Energy Desk complies with energy supplier’s individual Codes of Practice and the LOA must be physically signed by a person in authority who deals with the utility contracts, pasted electronically are not accepted. The name of this person should be clearly recorded below the signature.The top section must be completed with the business name and registered address, or trading address.The LOA should also be printed on company letter headed paper
- Why does The Energy Desk need a Contact Telephone Number?
The Energy Desk complies with energy supplier’s individual Codes of Practice and to ensure the service we provide is fair and that customers understand the implications of the Letter of Authority, suppliers may contact you directly to confirm that we have the authority to act on your behalf.