Wayleave agreement advice

kronos

Hi, I have power cables which run across my garden. With all the adverts popping up regarding wayleave payments I decided to contact uk power networks to see if I was entitled to compensation. They referred the matter to their appointed surveyors.

After asking some questions they have sent me a wayleave agreement to sign and offered a one off payment of £75 (£30 back payment for 6 years and £40 one off payment).
The agreement states the following:
 
2.-    THE RIGHTS
THE Grantor hereby grants consent for the Company:-
(a)       To install, maintain, inspect, alter, renew, remove and retain the Works and to enter the Property at all reasonable times (or at any time in the case of emergency) with or without vehicles plant or machinery for such purposes 
(b)      To fell or lop in a woodman like manner any tree or hedge on the Property which obstructs or interferes with the Works

 3.-   THE COMPANY’S COVENANTS
THE Company shall:-
(a)  Not cause any unnecessary damage or injury to the Property and shall take all reasonable precautions to avoid obstruction or interference with the use of any road or footpath sewer drain or watercourse that may be crossed by the Works 

 (b) Make good to the reasonable satisfaction of the Grantor any damage caused by or arising out of the execution of the Works. If for any reason any such damage cannot be made good the Company shall compensate the Grantor in an amount which has previously been approved by the Company

(c) Give to the Grantor not less than five days' previous notice (except in cases of emergency when as long notice as practicable shall be given) of the intended exercise of any of the rights conferred by Clause 2 above 

(d)  Upon completion of this Agreement, pay the Grantor a one-off payment of £75

(e) At all times keep the Grantor indemnified against all losses, damages and expenses which he suffers or incurs by reason or on account of any breach of this Agreement including any negligent act or omission of the Company in connection with the execution or existence of the Works provided that this indemnity shall not extend to any such losses damages or expenses to the extent caused by the default of the Grantor 

 4.-   THE GRANTOR’S COVENANTS

THE Grantor shall not:-
(f)  Do or cause or permit to be done on the Property anything likely to cause damage or interference of any kind to the Works

(g) Make or cause or permit to be made any material alteration to the Property so as to interfere with or obstruct the access to the Works or so as to interfere with the support afforded to the Works by the surrounding soil without the prior written consent of the Company 

5.-   TERMINATION

This Agreement shall remain in force for a period of 15 years from the date hereof and thereafter until determined at the expiry of not less than twelve months’ previous written notice given at any time by either party but without prejudice to the rights which the Company might exercise under the Electricity Act 1989
THE SCHEDULE 
(h) THE placing of an overhead electric line consisting of three or four conductors together with any ancillary apparatus across the Property in the line indicated in the approximate position shown on the Plan   

 

(i)                        THE erection of X poles and X stays/struts and appliances for the purpose of supporting the above mentioned electric line in the approximate positions indicated on the Plan   

 

(j)                        (c)THE placing of X underground cable(s) for transmitting electricity at a frequency of 50 hertz and at a pressure of 230/400 volts and low voltage telephone and signalling cables such cable(s) to be in the approximate position indicated on the Plan. Length of cable(s) approximately X metres.

 

(k)                       
THE siting of a distribution substation upon the Property with appropriate fencing (where necessary) in the approximate position indicated on the Plan together with all-purpose access thereto.

 

(l)                        (e)THE placing of an underground earthwire and pins in the approximate position shown on the Plan

I would like advice on the way forward. The amount isn't large so any payment for legal advice would out weigh this.
Would it be best to not sign and leave things as they are?
Is there any downside to accepting this agreement eg. complications if selling the  property. 
As far as I can tell the agreement doesn't permit them to do anything that they weren't already doing and I will then have terms in writing so could signing this be a positive thing? However l don't want to sign this and cause future problems.
Is the amount a fair payment or should I expect more or an annual payment? I questioned the amount and what would happen after 15 years ie further payment and the surveyors basically said they can only offer this as stated and I can either sign or not.
Thanks for any advice.

Section62

kronos said:

After asking some questions they have sent me a wayleave agreement to sign and offered a one off payment of £75 (£30 back payment for 6 years and £40 one off payment).

....

Would it be best to not sign and leave things as they are?
Is there any downside to accepting this agreement eg. complications if selling the  property. 
As far as I can tell the agreement doesn't permit them to do anything that they weren't already doing and I will then have terms in writing so could signing this be a positive thing? However l don't want to sign this and cause future problems.
Is the amount a fair payment or should I expect more or an annual payment? I questioned the amount and what would happen after 15 years ie further payment and the surveyors basically said they can only offer this as stated and I can either sign or not.
Thanks for any advice.

It depends on exactly what equipment/cables you have (the schedule appears generic and uncompleted) but the chances of you being able to get them to remove the equipment if you don't sign aren't guaranteed, so you could look on this as a 'free' £75 you hadn't been expecting for something that could go on happening whether you want it or not.

Obviously though, £30 + £40 doesn't add up to £75, and if the payment was £30 for 6 years (i.e. £5/year) then you might expect the payment for next 15 years to be £75, rather than £40.  Which would make the total £105?

Something is wrong with the maths, but the rates are usually set at standard levels and non-negotiable, so the surveyor's effective 'take it or leave it' is consistent with the normal approach.  You might just want to query the accuracy of the calculations, if not the level of payment offered.

Future buyers probably won't be phased very much - at least not if they have a decent solicitor advising them. Having something in writing might help the solicitor assure a nervous buyer, but having utility cables in or above properties is so common that solicitors should understand the normality of the situation whether or not an agreement is in place.

canaldumidi

Obviously section 5 Termination needs

* to be completed eg numbers of poles and stays etc, and

* to reflect what is there now ie if there is currently no distribution substation, then you don't want to grant them permission for a distribution substation!

kronos

My mistake should be 30 +45 but did question £5 per year and that's when they said it is what it is take it or leave it. Section 5 I copied and pasted and only part i applies the rest were crossed out but the copying seems to have removed that.

Davesnave

Maybe different utility companies have different rates, as we currently get £38.67 pa from Western Power for the stuff that's in our fields, but that's still not a fortune. We might also be under a different payment system, because our lines are 11kv, stepped down at the pole to feed our property and a business complex 100m away.  Every pole and stay etc is accounted-for.

I'd say the chances of getting the equipment removed are zero, so not signing isn't likely to bring any advantages in it's wake.

AdrianC

Davesnave said:

Maybe different utility companies have different rates, as we currently get £38.67 pa from Western Power for the stuff that's in our fields, but that's still not a fortune. We might also be under a different payment system, because our lines are 11kv, stepped down at the pole to feed our property and a business complex 100m away.  Every pole and stay etc is accounted-for.

I'd say the chances of getting the equipment removed are zero, so not signing isn't likely to bring any advantages in it's wake.

We, too, get a wayleave from WPD. Just under £30/year - and that's for having overhead 11kV, an 11kV-230v transformer on a pole with stays, another pole, a length of underground cable serving the neighbours, and overhead 230v cable heading in two other directions.

The biggest advantage is that they turn up every now and then to do some gardening for us for free. When we first moved in, they did a few thousand pounds worth of tree surgery for free...

unforeseen

TBH offering a wayleave is really just a goodwill gesture. They would rather have your agreement (at their rates) than invoke their legal rights to have the equipment on your land anyway. 

Section62

kronos said:

My mistake should be 30 +45 but did question £5 per year and that's when they said it is what it is take it or leave it.

I would definitely ask why it is £30 for the previous 6 years and £45 for the next 15, particularly because 15x£15 also equals £75.

There's a possibility the people you've been dealing with have been trained to give a robotic "take it or leave it" response because the rates are non-negotiable... but it didn't occur to them that the issue is with the calculation of the total rather than with the rates.

Another possibility is the £75 referred to in the agreement relates only to the payment for the future, because strictly speaking the agreement (and payment under its terms) will commence when the agreement is made - the agreement isn't being backdated 6 years - and therefore for completeness the agreement should refer to the backpayment of £30 as a separate item (or the DNO should keep it an entirely separate transaction.)

kronos said:

Section 5 I copied and pasted and only part i applies the rest were crossed out but the copying seems to have removed that.

I did wonder, because when I quoted your first post some of the text appeared in the quote as strikethough and it also appears the site has amended the original lettering of the paragraphs in the schedule as para (j) also includes the lettering (c) and para (L) has an (e).

Also be aware that (I think) that whole section of text is meant to be read as a separate schedule, and not part of Section 5.  I'd anticipate the agreement starts with a preamble or Section 1 which defines the "Works" as being those items listed in the Schedule attached.

If not, then the agreement is faulty because there is nothing else linking the "Works" to the items described in the Schedule - without that linkage being clear the DNO could claim the "Works" are anything they want them to be.  (subject only to being reasonable, and whether or not a nuclear power station would fit in your garden  )