VNI WEST:
INDEPENDENT ADVICE FOR LANDOWNERS

VNI West Project: A Guide for Landowners to Understand Their Rights

The Victoria to New South Wales Interconnector West (VNI West) is a proposed 500-kilovolt double-circuit overhead transmission line designed to link high-voltage electricity grids in Victoria and New South Wales.

In late October 2024, Transmission Company Victoria (TCV) announced its preferred alignment for the project. This marks a significant milestone, outlining the potential 240-kilometer route expected to cross around 250 private properties and impact regional communities.

With the preferred route identified – pending the completion of an Environment Effects Statement (EES) – landowners can begin assessing how the project may affect their property, including disruptions to farming and future land use. Additional investigations may be required to fully understand the impacts.

KEY STEPS FOR LANDOWNERS

Engage Early: Consult legal experts early to strengthen your negotiation position and ensure all impacts are considered.

Gather Evidence: Compile relevant documents to support compensation claims for property and livelihood impacts.

Understand Deadlines: Be aware of critical timeframes to protect your rights.

Below is an overview of key aspects of the VNI West project relevant to Victorian landowners.

LAND ACCESS

Before construction begins, TCV requires access to private land for due diligence investigations.

TCV has produced a guide for landowners around their proposed access being Landholder Guide: Land Access, Easements, and Compensation (May 2024), which is available here.

Please note that TCV was granted a licence to transmit electricity on 13 February 2025 by the Essential Services Commission.

As the holder of an electricity transmission licence, TCV have access rights under section 93 of the Electricity Industry Act 2000 (Vic) and landowner consent is no longer be required to be obtained. Pursuant to section 93 TCV now have a statutory power to enter private land for the planning, design and construction of the VNI West line. TCV will be required to comply with the Land Access Code of Practice which outlines the processes and obligations that TCV must follow when accessing private land. A copy of that code is available here.

EASEMENT ACQUISITION

Option Deeds
TCV will negotiate agreements with landowners for acquiring easements along the preferred alignment. These agreements, known as Option Deeds, outline the terms for granting electricity easements once all approvals are obtained.

Option Deeds specify the easement’s location and terms, including compensation and associated costs. Legal advice is critical to understand the implications for your property, as easements can affect not only the easement area but also the balance of your land.

Compensation
Landowners are entitled to compensation for easements acquired on their property. Compensation should reflect the value of the easement area, any reduction in the value of the remaining land, and other impacts. Independent valuation advice is essential to ensure fair compensation.

Legal Costs
Under the Landholder Guide, TCV have agreed to cover reasonable costs for legal and professional advice during the negotiation of Option Deeds. There is also provision for payment of reasonable costs for legal and professional advice under the Compulsory Acquisition Process outlined further below.

Compulsory Acquisition
If an agreement cannot be reached between a landowner and TCV through the Option Deed process, TCV may initiate a compulsory acquisition of the required easement.

This process is governed by the Land Acquisition and Compensation Act 1986 (Vic) (LAC Act) and can only proceed after TCV is granted a transmission license by the Essential Services Commission.

KEY FEATURES OF A COMPULSORY ACQUISITION

1. No Prior Agreement Needed
Unlike the negotiated process, compulsory acquisition does not require the landowner’s consent regarding the size, type, or nature of the easement. TCV can determine the easement’s parameters and have it recorded on the property’s title without the landowner’s agreement.

2. No Option Fee Payable
Landowners subjected to compulsory acquisition will not receive the Option Fee that would have been payable under a negotiated Option Deed.

3. Compensation Under the LAC Act
Landowners are entitled to compensation under the LAC Act. The compensation is calculated based on various heads, including:

• Market Value of the Easement: The value of the portion of land subject to the easement.

• Diminution in Property Value: Any reduction in the market value of the remainder of the land due to the easement.

• Disturbance Costs: Costs associated with disruptions to farming operations, relocation, or other impacts.

• Professional Fees: Reasonable costs for legal and valuation advice incurred during the acquisition process.

• Other Financial Losses: Additional losses directly resulting from the compulsory acquisition.

4. Process and Timelines
The compulsory acquisition process involves several statutory steps to ensure compliance with the LAC Act. These include:

• Notice of Intention to Acquire: TCV must issue a formal notice informing the landowner of its intention to acquire the easement.

• Objections and Hearings: Landowners have the right to object to the acquisition on certain grounds and may present their case during a hearing process.

• Acquisition and Valuation: Once objections (if any) are resolved, TCV can proceed to acquire the easement and determine compensation through a valuation process.

5. Disputes Over Compensation

If the landowner disagrees with the compensation offered, they can seek independent legal advice and challenge the valuation through negotiations or legal proceedings. The Victorian Civil and Administrative Tribunal (VCAT) or the courts may be involved in resolving disputes.

WHY SEEK LEGAL ADVICE NOW?

It is vital to obtain independent legal advice before engaging with TCV. Beck Legal can guide landowners through both negotiated and compulsory acquisition processes, offering strategic advice and engaging valuation experts as needed.

With extensive experience in infrastructure projects and deep understanding of regional issues, Beck Legal can provide tailored assistance to landowners impacted by VNI West.

Contact Beck Legal for guidance to protect your property and rights on 03 5445 3333.