ENERGYCO ACQUISITIONS & EASEMENTS
Compulsory Acquisitions by EnergyCo
EnergyCo (the Energy Corporation of NSW) is the NSW Government agency responsible for planning and coordinating the Renewable Energy Zones across NSW, including the new transmission infrastructure needed to connect them.
New transmission lines often cross private land. Where this happens, EnergyCo may need:
- a partial acquisition of property;
- a full acquisition of property;
- an easement for the transmission line;
- an easement for access; or
- a temporary construction easement during construction.
Compulsory acquisitions are carried out under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW), known as the Just Terms Act.
Rely Legal practises exclusively in compulsory acquisitions and property law. We act for landowners, tenants and businesses affected by EnergyCo projects, never for acquiring authorities.
Under the Just Terms Act, EnergyCo is required to pay your reasonable legal and valuation costs. Rely Legal does not charge a gap fee, which means you will not be out of pocket for legal expenses.
EnergyCo projects which may require compulsory acquisition of land or easements
If your property is affected by one of these projects or another EnergyCo project, call Rely Legal for a free, no-obligation initial consultation.
Understanding the Compulsory Acquisition Process
Stage 1
The Just Terms Act encourages acquisitions by agreement, which means the acquiring authority will provide a minimum six-month negotiation period for both parties to agree on the terms of the acquisition.
The negotiation period provides affected landowners with time to understand the acquisition process, seek legal and valuation services, ask questions and raise concerns.
Stage 2
If an agreement is not reached within six months, the acquiring authority may start the process to compulsorily acquire your property. This process starts when the acquiring authority issues affected landowners with a Proposed Acquisition Notice (PAN).
A PAN is a legal notice advising that the acquiring authority will compulsorily acquire the property under the Just Terms Act after a certain period, usually 90 days.
A section 39 claim for compensation form needs to be submitted to the acquiring authority within 60 days of receiving the PAN.
Stage 3
If an agreement is not reached within the 90-day notice period, the acquiring authority will compulsorily acquire the property by publishing an Acquisition Notice in the NSW Government Gazette. The acquiring authority takes ownership of the property from the date the property is published in the NSW Government Gazette.
The Valuer General will then determine how much money the acquiring authority should pay you for the acquisition according to the Just Terms Act.
After the Valuer General determines the compensation, the acquiring authority will send you a Compensation Notice, including an offer of the amount they have determined. You can either accept the offer or lodge an appeal in the Land and Environment Court within 90 days of receiving the compensation notice if you object to the amount offered.
The Court will generally decide that a ‘without prejudice’ conference is held for the landowners and acquiring authority to try and agree on the compensation amount. If an agreement is not reached, the dispute will proceed to a hearing.
FREQUENTLY ASKED QUESTIONS
Will I have to pay legal fees if EnergyCo acquires an easement over my land?
No. Under the Just Terms Act, EnergyCo is required to pay your reasonable legal and valuation costs. Rely Legal does not charge a gap fee, which means you will not be out of pocket for retaining us.
Can EnergyCo force me to grant an easement over my land?
Yes, in certain circumstances. EnergyCo can compulsorily acquire land, or an easement over land, for an authorised public purpose such as a new transmission line, but must follow the process under the Just Terms Act and pay compensation.
What is a transmission line easement?
A transmission line easement gives the easement holder the right to build, operate, access and maintain transmission infrastructure, such as towers and overhead lines, on your land. You continue to own the land, but the way you can use the land within the easement is restricted.
The terms of an easement are permanent and will bind future owners of your property, so it is important to understand them before you agree to anything.
How is compensation for a transmission line easement assessed?
Under the Just Terms Act, regard must be had to the following matters:
- Market value: for an easement, this is typically assessed as the reduction in market value of your land caused by the easement being imposed;
- Special value: the financial value of any advantage, in addition to market value, that is incidental to your use of the land;
- Severance: may include any reduction in the market value of the rest of your land, caused by it being severed. For example, where the easement cuts across and divides paddocks or breaks up access;
- Disturbance: including legal costs and valuation fees reasonably incurred in connection with the compulsory acquisition of land;
- Solatium (disadvantage resulting from relocation): compensation for non-financial disadvantage resulting from the need to relocate a principal place of residence; and
- Increase or decrease in value: a decrease in value of adjoining or severed land (sometimes called injurious affection) may give rise to a claim for compensation, whereas an increase in their value (sometimes called betterment) may give rise to a downward adjustment in compensation.
Easement claims can be complex, and small differences in how a claim is presented can significantly affect the compensation you ultimately receive. Rely Legal can help you understand your rights and pursue the full compensation you are entitled to.
What is a Proposed Acquisition Notice (PAN)?
A Proposed Acquisition Notice (PAN) is a formal notice that EnergyCo intends to compulsorily acquire your land, or an easement over your land, after a certain period, usually 90 days. A section 39 claim for compensation form needs to be submitted within 60 days of receiving the PAN. As strict time limits apply, contact Rely Legal as soon as you receive a PAN.
Am I entitled to compensation if EnergyCo acquires a temporary construction easement over part of my land?
Yes. EnergyCo may need temporary use of land outside the permanent transmission easement during construction, for example for access tracks, laydown areas or work compounds. If your property is subject to a temporary construction easement, you may be entitled to compensation for loss of use of the land while the easement is in place and reinstatement of the land to its prior condition. Rely Legal can advise you on your entitlements and negotiate with EnergyCo on your behalf.
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