Landowners’ power deals become more complicated
Farmers and landowners have been advised that, with major power companies currently seeking to replace short-term wayleave agreements with long-term servitudes, it is more important than ever to understand the longterm impact which such agreements could have on their land and businesses.
The Scottish Agricultural Arbiters and Valuers Association (SAAVA) this week warned that there had been a considerable move towards pushing such agreements – which were often more complicated and far reaching than they might appear – in recent months.
SA AVA president and Borders farmer Jane Mitchell said that it was extremely difficult to seek changes to servitudes once such an agreement had been signed as they were written into a prop - erty’s title deeds – whereas wayleave agreements could be renegotiated simply by giving a year’s notice.
“And the worry is that farmers and land owners might agree to such a change without realising that they would effectively be signing away their power to negotiate in the future,” she warned
Another area where landowners could lose out was during negotiations when power companies wanted
to take access to renew or upgrade power lines.
Mitchell said that while most farmers and landowners would be aware that they were entitled to claim for any losses incurred as a result of work done by an electricity company, some might not realise that this also included the cost of reasonable professional advice for an agricultural valuer to settle the claim.
“We know that some farmers are being told that they don’t need an agent, that the electricity company will pay them direct ,” said Mitchell.
“But not all farmers have access to the skills and information needed to assess and prepare a compensation claim.”
She said that while the electricity companies might believe that such an approach could save them money, a good agent could be able to help reduce the amount of the claim by proposing ways to reduce the impact of the works on the farm business.
Problems could arise during the operations, said Mitchell, as contractors carrying out the work were often unaware of the many and varied regulations affecting agriculture.
“One example is that contractors may see a grass margin around an arable field as the ideal access route to reach the site– not realising that it could be part of an environmental grant scheme,” she continued.
“If the works caused damage to the grass margin, the farmer could face penalties for a breach of their scheme – which in turn he will seek to recover from the electricity company as part of his claim.”
She said that it was best to use a well-briefed agent from the start before relations broke down – as they would be aware of such issues and would discuss them in advance to find alternative solutions to the benefit of both parties.
“Good communication is paramount,” she noted.
“Ask an experienced agent to help you with the process and deal with the problems on your behalf.
“Their reasonable fees will be paid as part of the compensation claim, so there is nothing to be lost by getting the right help,” she comcluded.