Once the preferred easement is identified, if transmission infrastructure is proposed for your property, then your LL will look to negotiate an Option for Easement agreement with you. Payments to landholders for a transmission easement will be determined on a case-by-case basis and will be determined by a qualified valuer and expert as required and can include:

• Loss in Market value as a result of the easement
• Loss suffered to farming operations as a result of the easement
• Payment for reasonable costs incurred for independent professional advice (TCV will pay for your reasonable costs incurred with obtaining independent valuations and any expert advice)
• Any reduction in market value of land which is caused by land severed from other land because of the easement.
• Any additional financial value only available to the specific landholder in respect of the affected land and not the market in general

In addition to this compensation from TCV, landholders will benefit from the Victorian government’s commitment to pay landholders $8,000 per kilometre per annum for 25 years for hosting transmission ($200,000 over 25 years).

For a detailed breakdown of compensation, please refer to part three of the landholder guide.

An initial compensation assessment will be calculated by a qualified valuer in line with the Land Acquisition and Compensation Act 1986 (Vic) and the Valuation of Land Act 1960 (Vic).

TCV will appoint independent qualified project valuers to assess the market value component of the compensation offered for the easement. With your agreement, the valuer can visit your property to inform the compensation valuation assessment, particularly around matters of disturbance to existing or planned operations on land affected by an easement.

When reviewing the Option for Easement proposal, you may also seek reasonable professional advice (such as an independent valuation and/or legal advice). You can provide feedback through to your Landholder Liaison on the Option for Easement proposal (such as property specific matters which should be included in the agreement). TCV encourages landholders to seek their own independent valuation advice, and the reasonable costs of this advice will be covered by TCV.

Compensation offers specific to individual properties have yet to be determined. The compensation offer will be based on individual circumstances and therefore will vary between properties.

As a part of the compensation offer, there are several fixed payments, including the $20,000 sign on fee and the Victorian Government payment of $200,000 over 25 years indexed to CPI.

The remaining compensation, including payments for disturbance and market value, will be determined as the project progresses and landholders enter into negotiations for an Option for Easement agreement.

Compensation is paid to landholders for hosting an easement on their property. Hosting only lines, but not towers, is still classified as an easement.

The fixed payments which make up the total compensation offer will not differ between properties which host lines and towers or lines only. The remaining compensation, including payments for disturbance and market value will differ depending on the circumstances of each individual property and the associated impacts.

The TCV compensation process described in the Landholder Guide does not apply to neighbouring properties.

VicGrid is developing guidance to set clear expectations for managing impacts on neighbouring landholders that are ‘significantly impacted’ by nearby transmission projects, which the project will comply with. Further information will be available in late 2023.

General information about the reforms work VicGrid is undertaking can be found on the Victorian Energy and Engage Victoria websites: Victorian Energy and Engage Victoria.

Compensation paid under the “option for easement” agreement (totalled with the Construction Licence Fee and Land Rehabilitation Offset Fee and any other required compensation payments) is generally split into two payments:

1. The first payment (80% of the total payment) is made when the option exercise notice is provided to the landholder that the option will be taken by TCV; and
2. The second payment (the remaining 20% of the total) is made when the easement has been registered on the title of the property.

In addition, the Victorian Government will make an annual payment to landholders of $8000 per year for 25 years indexed to CPI.