Hosting the grid: what landowners need to know about the new Electricity Code of Practice
As the CLA welcomes a new Code of Practice that fosters professional and fair behaviour, read our advice for landowners involved in electricity infrastructure projects
It will come as no surprise to many that there can be a lack of professionalism and communication between representatives and contractors in the electrical sector.
Sadly, there is frequently a lack of detail, changing plans and little regard to the impact on others. In turn, this leads to unfair arrangements, damage and unjust compensation provisions.
The new Electricity Code of Practice for the sector details and encourages behaviour that will better protect landowners whose land and property is impacted by such development. It also seeks to balance the rights and interests of licence holders – those who install and operate electricity infrastructure.
Powers granted to licence holders permit them to deliver electricity for the UK. The compulsory purchase powers to use land as needed are contained within the Electricity Act 1989. For larger projects, the government will make the final decision on whether the development can proceed.
Net zero targets for clean energy are necessary and ambitious. The government has an action plan for achieving the target of delivering clean power through the National Grid by 2030, necessitating a large increase in electricity infrastructure.
With the National Grid looking to implement the ‘Great Grid Upgrade’, it seeks to reinforce the existing grid, link up with new significant renewable generation sites and improve transmission of electricity to meet a growing national demand. Building such infrastructure will result in increased pressures on landowners and occupiers who face driven licence holders looking to deliver electricity targets.
The code in relation to landowners
It’s recognised that if net zero targets are to be met, the electricity network must be improved. For this to be achieved, a good relationship between licence holders and landowners therefore needs to be developed and maintained.
One priority has been establishing a framework to understand and respect the rights and interests of landowners. With the expectation that individuals act reasonably, constructively, positively and efficiently.
Helpfully, the Code of Practice briefly details the stages of progression which can be used to help guide landowners through the process. These are:
- Initial communication of the proposal, including its nature, scale and duration
- Pre-entry works/surveys plus covering access and health and safety protocols
- Delivery of works
- Emergency works
- Reinstatement of the site
- Taking access to existing infrastructure and for subsequent maintenance
- Compensation
- Dispute resolution
Often it is difficult for communities, landowners, farmers and rural businesses to get voices heard. The CLA guidance note Major Infrastructure and Compulsory Purchase - Getting Your Voice Heard, available for members, provides useful insights on high voltage transmission infrastructure that can be viewed as a Nationally Significant Infrastructure Project (NSIP). There is also a useful guidance note on Electricity Wayleaves: New Payments for Arable Land covering compensation figures.
The difference between a wayleave and an easement
A wayleave is a contract between a landowner and licence holder, giving an electricity company a right of access across the land to install or maintain poles, cables, ducts, pylons, and other equipment or infrastructure. This is in return for compensation, which is set out in the wayleave agreement (usually running for 15-20 years) and is paid annually. These are governed by the Electricity Act 1989, and frequently, companies look to agree by negotiation rather falling back on statutory provisions. For large infrastructure schemes, licence holders may seek a permanent easement in exchange of a one-off payment as this is more secure.
The Code of Practice has been developed by an expert working group which has included electricity licence holders, those who advise landowners and their membership organisations.
Guidance for landowners
This first version is being trialled for the coming 12 months. You can submit feedback by using the online Electricity Code of Practice survey here.
CLA members are strongly encouraged to instruct professionals to represent them in what can become complex dealings. The reasonable costs of your professional fees should be covered by the project provider. Individuals are also urged to:
- Keep records of all correspondents
- Get direct contact details
- Take plenty of photos
- Keep a diary containing thorough detail (thinking about who, what was agreed and when)
Please contact your local office or visit the CLA Business Directory for more information.
