Compensation for landholders on the proposed route
The Western Victoria Transmission Network Project (WVTNP) last year released the Landholder Guide: Land access, easements and compensation.
The guide provides information about land access, easements and compensation for landholders.
The preferred route will be identified later this year after further consultation with landholders with property on the proposed route, surrounding landholders and communities. There will also be further work on the technical studies, field surveys and investigations.
Every landholder on the proposed route has a dedicated Land Liaison Officer. Land Liaison Officers are currently working with landholders to identify and document their individual land use, current property infrastructure, and impacts of potential tower locations and easement requirements on their property. This information will inform selection of the preferred route, easement alignment and tower locations.
Once the preferred route has been identified and other technical studies are complete, we will work with each landholder on the route to discuss option for easement agreements.
An option easement agreement covers the details of the process to establish an easement on a property on agreed terms and for an agreed price within a certain period of time, for example three years.
In light of comments made on ABC Radio recently, we would like to reconfirm that compensation will be paid to all landholders where we acquire an easement over their property. The assessment of compensation will be determined in accordance with valuation principles set out in the Land Acquisition and Compensation Act 1986 (Vic) and the Valuation of Land Act 1960 (Vic).
Throughout this process, proposed route landholders will have many opportunities to discuss the impact of a potential easement on their property with the valuer and their Land Liaison Officer and to provide information to assist in determining the value of compensation payable. You can find more information in the Landholder Guide: Land access, easements and compensation here.
Compensation is calculated on a case-by-case basis, that takes a range of factors and impacts into consideration. This includes:
- Market value – Where an easement is being acquired, the compensation for market value is the difference between the market value of the land before the easement and after the easement. Market value may be calculated according to the ‘highest and best use’ of the land, having regard to what is physically, legally and financially possible. For example, the ‘highest and best use’ of the land might be subdivision of the land into individual lots or, its value might be greatest if multiple parcels are packaged.
- Severance – This is the reduction in market value of land which is caused by land being severed from other land because of the easement. For example, an easement on agricultural land may be located so that it effectively ‘quarantines’ a part of the land, limiting its use for farming activities. Compensation is payable for the depreciation in the value of the land associated with the severing of that land and will usually be wrapped up in the market value calculation.
- Special value – This refers to any additional financial value only available to the specific landholder in respect of the affected land and not to the market in general. This considers ‘special’ economic value rather than sentimental value. For example, a house fitted out with consulting rooms may have special value to the doctor-owner but would not have value to the market in general. This will usually be wrapped up in the market value calculation.
- Disturbance – This refers to any financial loss caused by disruption to the landholder, including the landholder’s business, arising directly and reasonably from creating of the easement. For example, if timing of the acquisition means that the landholder cannot harvest a sown crop, the landholder will be compensated for the value of crop lost.
- Legal/valuation – Reimbursement of any reasonable professional costs incurred by the landholder because of the acquisition of the easement
To ensure compensation is fair and fully considers the impact of the easement on a property, a qualified valuer will undertake all compensation valuations. The appointed valuer will work with the landholder to understand their individual property characteristics and uses to inform the valuation. Landholders may also obtain independent advice regarding compensation for the easement from an independent qualified valuer. Both valuations will be considered and discussed as part of the process to calculate and negotiate compensation.
Where a landholder obtains independent legal advice to assist in the process to negotiate an option for easement, and/or independent valuation advice from a qualified valuer to assist in the valuation, compensation and easement negotiation process, we will reimburse the reasonable cost of this independent advice.
We encourage you to take a look at the Landholder Guide on our website and if you have any questions or would like to talk to someone, please contact the project team by phoning us on 1300 360 795 or by emailing us at info@westernrenewableslink.com.au.
