Whats The Difference Between Level 1 & Level 2 Letter of Authority

Man Signing Contract

The Simple Explanation

Level 1 – The third party becomes your consultant, they do all the legwork, explain everything to you and you sign.

Level 2 – The third party become your deputy director and have all the power you have, they can agree contracts without your authorisation. You as the director can revoke the power at any time.

letter of authority hamed adefuwa

Interested In More Detail?

Talking about the differences in levels of authority is difficult but necessary. There are officially two types of letter of authority’s; level one & level two. Level one allows the third party mentioned in the document to request basic nonsensitive information from your current supplier, your contract end date, your usage and things similar to that. Level two permits the third party to sign new contracts on your behalf and change your billing address from your address to theirs. These are supposedly the two levels of authority you can grant but in reality, the lines are far more blurred than that.

Most brokers will add what they consider necessary to the letter. If a broker wants to sign you up quickly they’ll add only to request current contract information and to be able to terminate your current supply to the letter. This allows them to get you accurate prices and then switch/renew you as you please.

If however the broker, wishes to keep your business for a few years they’ll usually add things into the letter like, the permission to handle objections, change business information and even handle new contracts without the need for a signature.

Actions Available on Most LOA’s

  • Submit notice of termination
  • Request recent bills
  • Request current and renewal prices
  • Request terms and condition of supply

Warning

Signing a letter of authority without reading it is careless of you as a business owner or someone who’s been entrusted to look after this side of the business so please take five minutes to read things before you sign.

Beware of documents entitled “Level 1 Letter of Authority” when in actuality it’s a level 2. Don’t be duped – read the document and if you can, avoid signing them unless you genuinely are busy.

Domestic Energy Supply Deals

Domestic Energy Supply Deals

If you are interested in getting a good price on your home energy. I don’t personally do it however I have arranged some pretty decent deals below. Just click any or all of the links below.

First Utility


uSwitch


October – The Month So Far

hamed adefuwa october month update

This month has been a crazy month for me. I’ve been working at home for four months and now things are starting to get full on, when I started I was doing one contract every two days, now I’m averaging near two a day. Obviously, all business is good business but I do think I need to play it a little smart and improve my organisational skills.

My Headache

bad customer service hamed adefuwa
 
I’m suffering from constant pain in the shape of one particular energy supplier. If it wasn’t for the fact I have an agreement with them I would name them. They are one of the most unethical companies I’ve ever experience, they operate like a dodgy law firm/stock brokerage. I’ve switched over twenty-five businesses away from them in the last four months and they have unlawfully objected or blocked the transfer of at least fifteen of them. This creates more work for me, more emails and more phone calls. That’s not even the worse part, the customer ends up on out of contract prices just so that the supplier makes an extra £50.
 
I always advise organising your contracts a few months before the contract end date, this allows for time to deal with these ridiculous tactics.
 
That aside, the prices are fairly high at the moment but I’ve managed to negotiate some fantastic deals. After the Brexit vote and as the value of the British £ continues to drop, the energy prices rise further and even in this climate I’m still saving company owners money. It makes a headache worth it.
 
I’m incredibly pleased with my progress so far this month, to be honest, I owe it to some amazingly nice customers as of recent.

Mr Cook

 
I’d like to mention one customer, in particular, an extremely nice gentleman, I’ll name him Mr Cook for this purpose. He was born in July 1930, he lives in a small village in north England, I’m not sure what he did for a living but now he is a trustee for four charities in his village. He manages their accounts, balances their books, deals with tax and even shops around to get them great deals on their energy. At the age of 86, he’s a real legend, Mr Cook was emailing me at 10pm, he printed, signed and scanned me back a letter of authority and even used his smartphone to record a video of his meter so I could have a look at his meter.
 
I love the elderly, I feel like they are the most neglected in our society and I hate the fact that in the UK if I offer to help an old woman carry her milk, she would be too scared to accept my offer in case I run away with her bags. Honestly, it’s a real shame.
 
Mr Cook, however, is really trusting, he’s clued up and incredibly intelligent. I don’t like to think about being in my eighties but if I ever get there, I hope I’d be able to work out if a no standing charge and 11.2p per kWh rate is cheaper than a 22p standing charge with a 10.4p per kWh rate. These are calculations forty-year-old adults running successful companies often struggle with and Mr Cook has it in the bag.
 
I’d like to think that I helped Mr Cook get a good deal for his village hall but the truth is he helped me. I end this post as I started it, it’s been a stressful month but Mr Cook reminded me why I love my job and I wish Mr Cook many more years of health and happiness.

Hamed Daily #9 – £150 More Expensive

hamed adefuwa hamed daily blog

I intend with these posts to document everything that happens in my work day and walk you through my day. I am hopeful that by showing everyone my way of working I will be given the opportunity to arrange your friends & families business energy contracts.

Please note all customers mentioned in this are real however their names have been changed in order to protect their identity. If you happen to read about yourself and are happy to be named then I can do so and will also attach your business information to your name.

Let Today Begin – 03/10/2016

I’m extremely pleased with how early I’m getting out of bed in the mornings these days. It was only a few weeks ago I was dragging my dead body out of bed at 8.45am – now I’m up 6am beating the sun. Today was a fantastic day, I made a very nice amount of commission, which is the main reason anyone does such a job. To add to the blessing of being able to look after my family, I also have the pleasure of knowing I solved many problems today and even saved one lovely lady £550 on a £4000 bill.

hamed adefuwa hamed daily blog

Super Grateful May

I’ve been chasing May for months, six months to be exact. She assumed I was a nonsense caller but I didn’t give up. I kept trying and she gave me a chance. I gave her my best price with her current supplier Npower. She pulled out a bill and I was saving her near 20% while renewing her with Npower, May was over the moon. Usually, when I sign someone up they behave like they did me a favour, but she was seriously grateful when I had only saved her £70 a year. I figured I’d try helping further by asking about her gas as well. Turns out she was on British Gas’s variable price plan and paying a lot. Thankfully, I quoted her with British Gas and saved her £550 on her gas. You can imagine May’s reaction to that news. Now she wants me to take a look at her water bill, I have no knowledge on water but when the market opens I might take a look into it.

May was clever in renewing with her current supplier, sometimes switching isn’t always a good idea. If the saving in switching is small, and you switch and then end up on out of contract rates due to credit vetting issues, unpaid bills or lazy administration from your current supplier, your saving could be wiped out in a week or two on high prices.

“Hamed Pick Whoever You Want”

Steve runs a small security company. I signed him up last year and had the same success this year. Steve was incredibly busy but savvy. He unlike most didn’t need me to remind him ten times to terminate his contract. Thankfully he came onto my site, downloaded my termination email and sent it to his current supplier – legend.

Last year I put his consumption down as the national average, which after speaking to Steve this morning, it was 10x the amount he actually used. As Steve’s consumption was so low, the cheapest supplier was £25 cheaper than the most expensive, all other suppliers were in between the two. Steve didn’t mind who he went with and just said: “Hamed, pick whoever you want, I don’t mind, I’ll leave it for you to decide.” For me only two companies are in the race to be the best for customer service; OVO Energy and Scottish & Southern Energy. Considering SSE have been praised at every award ceremony and are well on track to be the first ever company in the UK to achieve a gold star in customer service (see here), I recommended them to him. Let’s hope they don’t let me down!

Food for thought; many people will say the price is all they care about, but it’s not the truth. Price may be the only thing you factor in when making a decision as to who you go with, but ultimately you care as to whether your energy supplier takes 5x the amount they’re supposed to out of your bank account. You also care as to whether your supplier decides due to you having a low consumption, they’ll be changing your prices, but you’re free to leave and find a new supplier just two months into the contract agreed. You also probably care that the energy supplier you’ve chosen remembers to apply for your transfer. These are all real problems many customers face so choosing a good supplier who’s 1.5% more expensive might be the better option sometimes.

£150 More Expensive

Sulayman is a guy I really respect. I called him eighteen months ago when I was working for a supplier and he told me his contract ends at the end of 2016. It was a brief conversation but I remembered it, Sulayman knew what he was paying, told me and I said I’d definitely beat it. Last week I called Sulayman and to my surprise, he remembered me. I was amazed, some people I speak to multiple times a week, sign them up and they forget me but not him. What impressed me further was he runs a convenience store that was very busy and he still stayed on the phone to listen to my prices.

It gets better…

He was currently paying a very high price with British Gas which he was unfortunately put on two years ago. He then told me he got another price from another broker. Nine times out of ten this wouldn’t have been a problem but the price he got was old, and the prices since July have been rising by around 8% each month. I wasn’t about to try and explain to Sulayman that my price would be higher, I just tried my best to beat it, I couldn’t.

I decided to work out how much more expensive I would be for every 20,000 kwhs he used. Turns out I was £60 more expensive per 20,000 kwhs. I was honest and explained I was more expensive, we worked out he used 50,000 kwhs a year so I was £150 over the year more expensive than the other price he had been offered.

The good news for both of us, Sulayman liked me, and more importantly, I was still £650 over the year cheaper than what he was paying least year with British Gas. I asked if he would sign with me and he agreed.

I sent him the contract to sign and the letter of authority, I got the letter of authority back but unfortunately not the contract. He was a bit tied up but tried to send me the contract again but it failed. He tried to take a picture of it but it wasn’t clear enough to pass the quality checks, so I asked him to send it back to me via email which I’m hoping will be coming back tomorrow.

There wouldn’t be a rush normally except for the fact that all of the suppliers have increased their prices massively due to some nonsense involving EDF not generating enough energy due to them carrying out random tests. Sounds a little fishy to me personally but it is what it is.

Energy Tip: I do advise everyone that is sorting out their energy contract to set aside a few hours on one day and get it done, as opposed to dragging out over two or three weeks. When comparing prices, you might have a price from two weeks ago that is now out of date and has since increased. This only takes up more time. What you can do is ask brokers and suppliers to contact you on your selected day. The guys who have good deals with suppliers will contact you on that day, and the ones seeking massive commission will leave you alone.

Smart Meters Delayed Even Further & Other Issues

smart meter rollout hamed adefuwa

These smart meter delays are getting ridiculous now. I remember in 2014 they came out with a plan that all businesses using maximum demand meters will be upgraded to half-hourly meters by April 2016. That was then pushed forward to April 2017 since none of the suppliers even attempted to meet that deadline. I do feel for all the customers stuck on Maximum demand meter contracts with small suppliers who don’t have the functionality to upgrade them. It’s unknown as to how the suppliers will shift them onto a new supplier.

smart-meters-rollout-hamed-adefuwa

Is This The Right Time?

The government has chosen to mess with both the business sector and the domestic sector at the same time, which surely can’t be a smart move, especially now with all this Brexit nonsense. None the less, all energy suppliers have been told they must start installing smart meters now and have until 2020 to hit their target. It’s going to cost £10.6 billion to install 50 million smart meters. The funny thing is, it will only save the average household £26 a year.

With a target of 50 million smart meters, they began in 2011 and as of 2016 there had been 550,000 meters installed. Things were going slow.

Kind-of-Smart Meters

British Gas was a little silly in installing “kind of smart meters”, which were no-where-near what the Government had asked for. They now have the annoyingly silly task of replacing all those “smart” meters by 2020.

Privacy Issues

I’m not one to care too much about privacy. I don’t care who has my direct debit details, if money gets taken out I’ll just get it reversed. I don’t consider information like my families names or date of births as sensitive so I’m not one to buy into lots of these privacy concerns that others have. However with that said, there are some major issues with this mass smart meter rollout. When you look at the mess that has been created by it, the lack of enthusiasm by both energy companies and customers, it’s all been a bit sloppy.

The biggest issues are probably; your home energy network becomes connected to the internet, people with access to the network can see what times your usually at home if you’re at home now and what you use your energy on. Smart meters are even detailed enough to determine where in your house energy is being consumed, i.e. you’re in the shower for 45 minutes between 8pm and 8.45pm.

One of the intelligence agencies investigated the systems being installed and noticed a key flaw. Every smart meter being installed in a business and home has the same encryption key which is used to pull off all the information from the meter. This means, anyone with access to that key, or if the key was discovered by hackers, every smart meter information could be compromised.

Smart Meter Delays

Two of the big companies involved in this whole process (BEIS & DCC) claimed in July that they would have their systems up and running by September. It was originally supposed to be done by 17th August but that didn’t work. One of the spokespeople for the BEIS said;

“The new infrastructure is planned to go live at the end of September, it is currently being tested to deliver a long-lasting, world class system to bill payers.”

My Final Thoughts

I doubt the delays will affect things too much however I do believe this is a sign of things to come. E.ON got fined £7 million in November 2015 for not doing enough. With all these delays and security issues, I do believe we will see more problems with this whole transfer. Let’s hope things go well.