Flaws exposed in new rules of engagement between power companies and farmers

Victorian power companies are under extreme pressure to speed up construction from governments needing to meet their renewable energy targets.

Thousands of kilometres of new lines are needed to link wind and solar projects across the country to the national power grid.

Farmers and other private land owners are being blamed for holding up progress.

Most believe power companies have no alternative but to use their legal authority to access private land to finalise their route investigations.

A land access code just developed by Victoria's Essential Services Commission will be enforceable from March next year.

It hopes to be the road map to navigate the upset which is certain to be caused when the big stick is applied.

The ESC says its code "aims to minimise the impact of access and improve consultation with landowners".

But the code already has flaws.

It does not apply to Transmission Company Victoria which is charged with building the controversial VNI West transmission project.

Simply because unlike AusNet, which has been tasked to build the Western Renewables Link, TCV is not a licensed electricity transmission company.

AusNet is a fully fledged electricity transmission company and is planning the route for the Western Renewables Link from Bulgana (near Ararat) in western Victoria to Sydenham in Melbourne's north-west.

Both are operating under the direction of the Australian Energy Market Operator.

TCV has been negotiating with often hostile landowners to help pin down the final route for the controversial transmission line from near Ararat to cross into NSW near Kerang.

TCV says it is "currently reviewing its processes" to ensure its people are working in accordance with the new code.

The ESC agrees it doesn't have to.

AusNet has powers to access private land under section 93 of the Electricity Industry Act 2000.

The code only applies to power companies which hold a transmission licence issued by the commission.

"In the event TCV is granted a licence, it would need to comply with the Land Access Code of Practice," the ESC confirmed.

"As it does not currently hold a transmission licence, TCV cannot access land under section 93 of the Act."

A TCV spokeswoman said the company was "currently in the process of applying for a transmission licence in Victoria" to allow it to transmit electricity, operate transmission infrastructure and support land access, planning and environment approvals work.

The spokesman said TCV has had "many constructive conversations" and negotiated access agreements to private land for important survey work.

"The work of the land team and the conversations it has with landholders, stakeholders and communities are fundamental to TCV's commitment to find a location for VNI West with the least impact on farms, the environment, and local communities," a TCV spokeswoman said.

Many land owners belong to protest groups which continue to oppose to the power line plans and vow to refuse access to their land.

The new ESC code is also directed to the new transmission projects, and not existing power lines.

"The rules apply to licensed electricity transmission companies accessing, or seeking to access, private land using statutory powers under the Electricity Industry Act 2000. It applies for activities on new transmission projects, or when an existing line is upgraded, replaced or decommissioned," the ESC said.

This reference has upset the Victorian Farmers Federation which says not enough was being done to protect the rights of landholders when it comes to the development and operation of transmission lines across farmland.

VFF president Emma Germano said the ESC code falls short of offering farmers the protections they need.

"Whilst the code is a positive step forward, it will not apply to existing transmission lines and we are concerned that it will not apply to new transmission lines once they have an easement in place."

The VFF was more pleased with the requirement for transmission companies to consult with landholders about farm biosecurity management plans.

TCV has narrowed down its proposed route from 50km wide to 2km wide.

About 540 properties have been identified in the draft corridor.

Financial penalties are available to the ESC under its new code if it is found have been breached by power companies.

"Under a penalty notice issued by the commission, contraventions of provisions designated as civil penalty requirements in the Land Access Code of Practice will automatically attract a default penalty notice amount. For transmission companies this is 200 penalty units (currently $38,462).

"If a court makes a contravention order against transmission company, the court may order the transmission company pay a civil penalty amount equal to 1200 penalty units (currently $230,772).

"The rules apply to licensed electricity transmission companies accessing, or seeking to access, private land using statutory powers under the Electricity Industry Act 2000. It applies for activities on new transmission projects, or when an existing line is upgraded, replaced or decommissioned," the ESC said.

"It does not apply to operation and maintenance activities for existing transmission assets, voluntary access agreements, land that is not private land, or where land is accessed in accordance with an existing easement."