Western Renewables Link
Western Renewables Link Overview
The Western Renewables Link is a proposed new 190km overhead high-voltage electricity transmission line that will carry renewable energy from Bulgana in western Victoria to Sydenham in Melbourne’s north-west. The Australian Energy Market Operator (AEMO) selected AusNet Services to deliver the project and AusNet Services will build, own, operate and maintain the new infrastructure. The Western Renewables Link will only be made possible via the compulsory acquisition of land. When a property is compulsory acquired a number of parties may have a claim to compensation, such as a landlord, tenant, licensee, or option holder.
Compensation
Compensation assessments are a specialised field of valuations, with our firm cognisant of the relevant legislative requirements set out in the Planning and Environment Act 1987 and the Land Acquisition & Compensation Act 1986. Further to statute law requirements, we are abreast of relevant case law outcomes which often provide notable reference for complex valuation matters. Examples of cases relating to high voltage transmission line easements are summarised below:
Kater v Electricity Transmission Authority (NSW) [1996]
In this case the judgment relates to compensation for the diminution in the value of the claimant’s land due to the construction of a 500KV electricity transmission line with a 70-metre-wide easement.
In his judgement Pearlman J adopted the piecemeal method to assess the compensation payable, finding the following:
50% diminution in value to the easement area;
Full value of the land occupied by the transmission towers is recoverable;
35% diminution in value to the homestead noting it as a “high quality building…which greatly contributes to its [the subject property] status as a prestige property” and the transmission line is visible from many places inside the homestead;
30% diminution in value to the managers residence closer to the transmission line noting that it “does not have the prestige quality of the homestead”; and
Percentage discount of up to 10% to the remaining land (referred to as Injurious affection).
Longeranong Pty Ltd v Electricity Trust of South Australia (1990)
In this case the judgement relates to the compulsory acquisition of land for the construction of a 275kV transmission line with a 50-metre-wide easement. The land in question was a large rural holding , with the length of the easement extending 4,395 metres across the property and incorporating the erection of 11 steel towers (to a maximum height of 50 metres). The total easement area was 24.675 hectares.
In his judgement Jacobs J applied an approach that treated separately the various components of the impact and found the following:
50% of the freehold value for the value of the land “taken” by the easement”, noting that “factors to be weighed include the location and extent of the easement, and the quality of land involved in the easement itself, compared with the holding as a whole”;
The judge noted that “It is a fallacy in this case in assessing compensation by reference to a percentage adverse effect upon the property as a whole, for it means that the larger and more valuable the property through which the easement passes, the greater will be the compensation.”….“the fact is that the further one moves from the easement, the less is the injurious affection”; and
Therefore, the compensation assessed for Injurious affection was reduced by two-thirds to reflect the fact that "in a case such as the present in which the adverse effects of the acquisition are so, relatively, very slight in relation to the whole property, and to the value of the whole property, it is more realistic to restrict their effect to a much smaller portion of land.
Engaging a property valuation firm to assess compensation for your Western Renewables Link matter
Engaging a property valuation firm that is experienced in compulsory acquisition matters is a critical step to ensuring an adequate sum of compensation is achieved. Further to assessing the relevant heads of compensation, the appointed property valuer must be able to articulate and justify their position within intensive conference and court settings. Sovereign Valuations is a market leader in providing compensation assessments, having been involved in major infrastructure projects throughout VIC & NSW, including renewable energy zone projects and large-scale matters which have included compensation assessments in excess of $100 million.
Contact Us
To discuss your Western Renewables Link matter, contact us on 1300 710 000 for an obligation free discussion, or e-mail admin@sovereignvaluations.com.au and we will respond to you as soon as possible.
