A Letter of Authority — an LoA — is the only piece of paperwork you sign before we can rebid your business energy contract. People panic about it. They shouldn’t.
This guide is the plain-English version of what’s on our legal LoA page. Same facts, more context.
What you’ll get out of reading this:
- What an LoA actually does — in normal English
- The six things it explicitly can’t do
- Whether it commits you to anything (it doesn’t)
- How to revoke it (one email)
- The exact words to look for if you’re handed an LoA by a less-honest broker
The 30-second version
A Letter of Authority is a one-page document that gives a broker permission to talk to your retailers and your meter data provider on your behalf.
It is not:
- A contract for energy supply
- A commitment to switch
- Access to your bank or finances
- An agreement to pay the broker anything
Brokers paid by the retailer (us included — we’re paid by the energy retailer when you switch, never by you) need an LoA because retailers won’t release pricing or quote a new contract without proof you’ve authorised someone to ask on your behalf.
It’s an admin instrument. Nothing more.
What an LoA actually lets us do
Three things. That’s it.
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Request your meter data from your meter data provider. Half-hourly consumption, demand readings, the actual curve of how your business uses power. We use this to quote retailers on your real load, not an assumption.
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Get quotes from retailers using your business name, ABN, NMI/MIRN (the unique site identifier on your bill), and the meter data above. This is where the comparison comes from.
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Submit a customer transfer request if — and only if — you confirm a switch. The retailer takes it from there. You sign the actual supply contract directly with them.
Notice what’s missing: anything to do with your money, your bank, your direct debit, your existing contract’s signature. The LoA touches none of that.
The six things an LoA can’t do
This is the part the brokers who play it sneaky don’t write down.
1. It can’t sign a supply contract for you
Your supply contract is between you and the retailer. It needs your signature. An LoA can’t substitute for that. If you ever sign an LoA and a new contract starts without your fresh signature on the contract itself, something has gone wrong — call the Energy and Water Ombudsman Queensland.
2. It can’t lock you into switching
The LoA authorises us to get the quote, not to act on it. You’re free to say “thanks, but the offer’s not sharp enough” and walk. We’ve had clients do exactly that. We’re not interested in chasing every job.
3. It can’t access your bank, payments, or direct debit
We never touch your money. The retailer’s direct debit is set up by you, with the retailer, separately. Nothing in the LoA gives anyone debit authority.
4. It can’t share your data with anyone other than the retailers we’re quoting
Your bill data goes to the panel we’re quoting (usually 4–6 retailers, sometimes more for C&I). It does not go to data brokers, marketing lists, or anyone else. That’s both a privacy commitment and a legal one under the Privacy Act 1988.
5. It can’t change your network connection or your physical supply
Switching retailers doesn’t touch the network. Same Energex (or Essential Energy) wires. Same poles. Same meter. The LoA doesn’t authorise any work at the physical site.
6. It can’t be backdated, transferred, or stretched
The LoA names the broker (us) and the period it’s valid for. We can’t pass it to another broker. We can’t claim it covers other parts of your business it doesn’t name. It’s purpose-bound.
Does signing an LoA commit you to anything?
No. Three checkpoints before you’re locked into anything:
- You sign the LoA. No commitment. We get permission to quote.
- We send you the comparison sheet. No commitment. You read, ask questions, push back.
- You sign the retailer’s contract if (and only if) you decide to proceed. Now you’re committed — but to the retailer, with a 10 business day cooling-off period under NERR.
Three signatures, three decisions, one commitment.
How to revoke an LoA
One email.
Send to hello@smartaswitch.com.au or directly to me at joseff@smartaswitch.com.au saying you’d like to revoke the LoA. We do three things:
- Stop any active quote requests.
- Notify the retailers we were quoting with that you’ve withdrawn permission.
- Remove your bill data from our active workflows.
No phone calls, no admin fee, no “are you sure” gauntlet. Done.
How to spot a bad LoA
If you’re handed an LoA by a broker and any of the following appear in it, slow down:
- “Exclusive” or “sole representation” terms longer than 90 days. Honest brokers don’t lock you out from getting a second opinion.
- Auto-renewal clauses in the LoA itself. The LoA shouldn’t auto-renew — re-issuing once a year if you want to is the honest approach.
- Broad data-sharing clauses that don’t name which parties data is shared with.
- Permission to sign supply contracts on your behalf. No broker should have this. Ever.
- Indemnity clauses pushing risk onto you. Brokers carry their own professional indemnity. Yours shouldn’t be paying for theirs.
- Hidden fee schedules — particularly retainer fees, “consulting fees”, or “service fees” paid by you to the broker. The honest model is: broker is paid by the retailer when a contract switches. If money flows from you to the broker, ask for the dollar amount in writing before signing anything.
Our LoA — you can read it here — has none of the above. If we ever amend it, we’ll re-sign with you. Not auto-update.
Common questions
Can I have an LoA with more than one broker at the same time?
Technically yes, but retailers get confused, quotes contradict, and the whole point of a comparison gets diluted. Better: give one broker a 30-day window. If they don’t show you a meaningful saving in that window, revoke and try another.
Do I need an LoA if I just want a “rough idea” of what I’d save?
No. Use the calculator for a quick range. The LoA only comes in when you want a real quote tied to your actual meter data.
Do retailers prefer LoAs from brokers they already know?
Yes, in the sense that an established broker means a faster turnaround. They don’t price differently based on the broker (or they shouldn’t). If you ever suspect they have — let us know. We’ll push back.
What happens to the LoA if I change accountant or business structure?
The LoA names the business (and the ABN, once issued). If you change ABN or restructure, the LoA needs to be re-issued. Simple.
What’s the difference between an LoA and a contract review?
A contract review is a meeting where someone (us, an accountant, an energy procurement consultant) looks at your existing contract and tells you what’s wrong with it. No retailer involvement needed. An LoA is what enables us to then go and rebid the market against that review.
One last thing
The LoA exists because retailers won’t talk to brokers without it — not because it benefits the broker. It’s an admin step, not a hidden hook.
If you’d like to see ours before signing anything: email us and ask. We’ll send the actual one-page document, you can read it cold, and you decide.
Or just upload your bill on this page. We’ll send the LoA along with the first comparison.
Joe Lawrence — Co-founder, Smarta Switch Australia
0435 642 592 · joseff@smartaswitch.com.au