NZIER report on compensation for transmission infrastructure

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3.8 Summary of literature key points Efficiency: calculating easement costs Compensation is usually a function of: easement area and land value operational costs injurious affection disturbance. Easement area is compensated at land market value for 100 percent of the „footprint‟ and for 100 percent of easement area through commercial forests. Other land uses are usually compensated based on how remaining easement land can be used for normal farming operations. Land value is generally based on market data, although the accuracy of such data is disputed by some authors. Equity: payment methods We found examples of lump-sum one-off payments; lump-sum together with periodic and reviewable payments; and periodic payments only. In theory the current value of a lump-sum payment is the same as periodic payments, with preference for one or the other reflecting time preference or willingness to bear risk. Equity: splitting the surplus The same base factors are generally used to determine operational costs in different countries, although exactly how compensation is calculated in practice is not always clear. Some countries award compensation for damage to views and perceived damage to health from EMFs, although again it is not clear how compensation is calculated. Other Damages - In all cases compensation is awarded for one-off direct damages caused during the transmission lines construction. Negotiating strength - Utilities are usually in better bargaining positions than landowners due to compulsory acquisition powers, greater size, experience and awareness of the compensation process. Landowners‟ positions are strengthened by joining forces and hold-out possibilities. <strong>NZIER</strong> – Compensation for transmission infrastructure 27
Table 1 Compensation summary Country (utility, state) Damages Australia (Victoria) Australia (Queensland) Canada (Altalink Alberta) Canada (Hydro- Québec, Québec) Finland (Fingrid Oyj) United Kingdom (National Grid) United States (Wisconsin) New Zealand (Transpower) Source: <strong>NZIER</strong> Payment covers Payment method Pay basis Production loss Operating cost Externalities Lump-sum payment x x x x x x x x x x Annual payment <strong>NZIER</strong> – Compensation for transmission infrastructure 28 No. support structures x x x x x x x x x x x x x x x x x x x x x x x x x x x x x
Page 1 and 2: Compensation for transmission infra
Page 3 and 4: Key points Easements create a surpl
Page 5 and 6: The costs of providing the option o
Page 7 and 8: 5.1 Costs of periodic payments ....
Page 9 and 10: Some authors suggest that that the
Page 11 and 12: 2. Easements An easement is a right
Page 13 and 14: Figure 1 Infrastructure surplus $ S
Page 15 and 16: information and the method by which
Page 17 and 18: Landowners feel, however, that Tran
Page 19 and 20: The remainder of the literature rev
Page 21 and 22: the degree of sterilisation (Hydro-
Page 23 and 24: the cost of driving around support
Page 25 and 26: lump-sum and annual payments (PSC 2
Page 27: thought approximately 90 percent of
Page 31 and 32: 4.1.1 Market value of land Estimati
Page 33 and 34: landowners is to do with the requir
Page 35 and 36: cross already worked ground. As an
Page 37 and 38: In a number of countries the effect
Page 39 and 40: 5.1 Costs of periodic payments We s
Page 41 and 42: for four different land uses (fores
Page 43 and 44: 5.2 Results For modelling purposes
Page 45 and 46: 6. Transparency and collective barg
Page 47 and 48: In conclusion we think that easemen
Page 49: Munneke, H and J Trefzger 1998. Non

NZIER report on compensation for transmission infrastructure

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