Pay the rent for pylons

A fundamental truth about New Zealand's electricity supply network is its dependence on farmer goodwill. A significant part of the national grid, and the distribution lines linked to it, run across farmland and a big part of that platform was obtained for free.
It's free in the sense farmers were not paid for the loss of property rights to their land when the poles and pylons were installed.
Before the electricity reforms of the 1980s and 90s, the imposition of a line was seen as something done in the wider public good. The electricity supply was a community-owned enterprise, quite literally power to the people by the people.
Times have changed for farmers and for the arrangements that get electricity to consumers.
As a result, what is paid for the lines platform being on private land has become increasingly controversial. The imperative on farmers to make a commercial return from their land has substantially increased.
There is also a strong feeling that since the supply of electricity is run commercially, with dividends and profits going to shareholders, that the landowner deserves financial recognition.
It's only since the Electricity Act of 1992 that landowners have received compensation for new lines, or upgrades to the lines on their property.
This is in the form of a one-time lump sum that is supposed to cover the impact on property value, the rights and conditions purchased by way of an easement and disturbance from the works.
Most of the network was already built and, in most cases, compensation wasn't paid.
The challenge faced by farmers negotiating a one-time payment for hosting pylons that will be there for generations has hit the headlines in recent years with Transpower's 400kv Waikato to Auckland link.
Landowners realised all they were receiving was a payment to balance their losses, as set out in the Public Works Act.
They had one chance to get it right, knowing that in the years to come much money would be made by other parties, including private electricity companies, from the electricity pushed along the wires on their land.
In South Canterbury, the ire of farmers was raised in a controversial upgrade to national grid lines. Several farmers refused access because of the lack of commercial consideration for the land they provide.
Federated Farmers continues to make a strong case for reviewable payments, in the form of an annual rental, to compensate landowners faced with lines on their property.
The Federation argues that reviewable rental payments would ease new line negotiations by offering an ongoing and reviewable income from the corridor of land.
This is steadily being advanced and the Federated Farmers has also urged the Government, which receives a dividend from Transpower, to further consider landowners who have never received compensation for hosting lines and allowing access for maintenance.
A sound market operates on the basis of every participant receiving a fair return for their input.
This is not the case with the electricity market. Getting a rental payment to landowners hosting the network would do a lot to get that market working efficiently, while securing the nation's future electricity supply.