NZIER report on compensation for transmission infrastructure

the requirement that landowners are provided full compensation for “acquisition,
taking, injurious affection, or damage” should form part of compensation.
There are a number of additional factors, such as freeing stock that get stuck in
towers, that in isolation are largely insignificant. These do, however, impose
additional costs on the farmer and should be accounted for. Possibly the easiest way
to cover all costs is to provide compensation somewhat greater than estimated
easement value, as suggested above.
4.2.2 Quantifying operational costs
Table 2 Operational costs estimates
Per structure per year for different land uses
Forestry Dairy Crops Sheep / cattle
Irrigation 0 3,725 3,725 0
Pests / weeds /
fertiliser
Other working
around
1,196 552 552 552
480 900 940 0
Technology cost 0 103 103 0
Insurance 500 0 0 0
Totals 2,176 5,280 5,320 552
Source: <strong>NZIER</strong>
4.3 Disturbance
There seems to be little argument in the international literature, or in New Zealand,
around payment for disturbance or damages to crops, fences and other property
when easements are built. The current approach of Transpower replacing or
providing full compensation for whatever is damaged helps with efficiency and is
equitable.
4.4 Externalities
Evidence suggests that transmission lines do have aesthetic and health impacts,
lowering the value of affected properties, but the effect is very variable with
circumstances. It appears that these effects diminish the further lines are from
buildings or similar. The appropriate amount of compensation will vary by height of
structures and distance from buildings so should be determined on a case by case
basis. Realistic assessment of these costs, including recognition that they will
increase as towers get taller and closer to buildings, is important for efficiency.
<strong>NZIER</strong> – Compensation for transmission infrastructure 35