What is a wayleave?
These are contractual licenses for which an annual payment is made in advance to the owner and/or occupier to cover the financial impact of having equipment on their land.
In simple terms it is an agreement with a third party to install plant and equipment on land within their ownership and have access rights to maintain and repair it.
Once signed and honored (equipment in place and payment made and accepted) it becomes a form of contract.
We usually use Wayleaves to cover equipment that is to be placed on land you do not own and or which by virtue of its cost, place and function within our network is considered to be of relatively low value.
Wayleave payments
The annual payment is made up of 2 elements:
- Rent
- Compensation for any losses/inconvenience – To cover land lost for crop production, and extra costs associated with the physical presence of the equipment ie extra time and fuel driving around equipment.
Representatives of The Electricity Supply Industry (ESI) liaise with representatives from the Country Land Owners Association (CLA) and National Farmers Union (NFU) and using scientific formulae produced by the Agricultural Development Advisory Service (ADAS) under the Ministry of Agriculture Fisheries and Food (MAFF), now the Department of Environment Food and Rural Affairs (DEFRA), calculate, revise and recommend payment rates on a regular basis. The Company then decides whether or not these rates are appropriate within its operating area and adopts them if they are.
Wayleave terms
The Wayleave details:
- what equipment is to be located where.
- the conditions under which the Company can have its equipment on the property.
