IFA Reach Agreement with ESB & EirGrid on Lines and Cables
IFA has negotiated two new agreements with ESB and EirGrid.
One covers compensation and goodwill payments to landowners for the refurbishment and uprate of existing 110kV and 220kV overhead electric lines on their lands.
The other covers compensation and goodwill payments to landowners in respect of the placing of new 110kV, 220kV, 400kV transmission underground electric cables on land.
The agreement for the refurbishment & uprate of existing lines replaces a previous agreement and takes effect from Sept 1st, 2021.
The compensation payments will be contingent on landowner co-operation (and the co-operation of any occupiers) so that all necessary works can be carried out without delay.
IFA Infrastructure Project Team Chair Paul O Brien said, “It allows landowners the option of accepting what is on offer under this agreement, and/or pursuing their own claim through arbitration, which they are entitled to do under the relevant legislation”.
He said the agreement provides farmers with an option other than the arbitration route, which can be time consuming, costly and uncertain.
However, the farmer’s statutory rights are fully protected. Even if they choose to accept the payments negotiated by IFA, they still have the option of going to arbitration if they think the payments are not sufficient to cover their damage/loss.
Under the package for new underground transmission cables, landowners will be compensated in an early and structured manner at agreed rates, subject to their co-operation, and provided they enter either a Settlement Agreement or Option Agreement and also grant a Deed of Cable easement to ESB.
This package provides for an early sign on payment, as well as goodwill payments and also provides for the possibility of further compensation in the future under a loss of development clause, subject to certain conditions.
Landowners have two options available them under the package. Option 1 is where the landowner can accept the Cable Package (to include the LOD Clause) in satisfaction of their statutory entitlement to compensation or alternatively, if landowners prefer, they can instead submit a claim to ESB for consideration, with the option of Arbitration in default of agreement, as provided for under the ESB legislation.
ESB and EirGrid have also worked with the IFA to create a Code of Practice in relation to cables. This provides information for landowners on the various activities associated with the survey, construction, and maintenance of infrastructure.
The IFA’s negotiating team comprises four farmers and a lead negotiator appointed by the IFA President. These teams have access to the necessary advice including legal advice and it has been agreed that ESB/EirGrid will contribute towards the costs incurred by the IFA during the negotiations.
The Refurbishment and Uprate agreement contain the following elements and payment rates:
Compensation payments of €15,450 for a mast; €7,725 for a pole set; €11,175 for a stayed pole set; and €2,000 for wire only to qualifying landowners.
Goodwill payment of 10% of the total compensation payments, with a minimum of €3,975 and a maximum of €7,950 per landowner.
In addition to the compensation and goodwill payments, any land damage and crop loss caused as a result of the works will be reinstated by the ESB or compensated for in accordance with the ESB/IFA Code of Practice.
The Cables agreement contain the following elements and payment rates:
Early sign-on payment of €10 plm (per linear metre) with a minimum of €2,000 and maximum of €5,000.
Compensation payment of €120 plm for the placing of the cable.
Joint bay payment of €20,000 with adjacent manhole covers.
HDD (Horizontal Directional Drilling) payment of €5,000.
Goodwill payment of €37.50 plm with a minimum of €5,000 and a maximum of €13,000.
Passing bay payment of €15,232 for 60m and €20,000 for 100m length, usually required for 24 months.
Loss of Development clause which provides for compensation should the existence of the infrastructure impact on the future development potential of the property subject to certain criteria.
Fees for legal and valuation advice.
Survey payments at agreed rates for site exploration works.
