Transmission Easement – How to Obtain Compensation?

Transmission Easement – How to Obtain Compensation?
Jakub Chajdas

Jakub Chajdas

Partner / Attorney-at-law

In legal practice, the concept of a transmission easement often raises doubts. Both among property owners and transmission companies. Some demand compensation, others remuneration, and others both claims at once. This article explains what a transmission easement is. Find out in which situations payment may be claimed, and what the differences are between compensation and remuneration.

Table of Contents

What Is a Transmission Easement?

A transmission easement is a limited property right regulated in Art. 305¹–305⁴ of the Polish Civil Code. It allows a transmission company – such as an energy provider, gas supplier, or internet operator – to use someone else’s property to the extent necessary for the construction, operation, and maintenance of transmission facilities.

In other words, a transmission easement means that the landowner must tolerate the presence of transmission devices. For example, power poles, cables, pipelines, or fibre-optic cables. The landowner must enable the company to maintain the devices. In return, the owner may claim appropriate remuneration.

The legal concept of a transmission easement was introduced into Polish law only in 2008. Since then, landowners with transmission equipment on their property can claim compensation.

How to Establish a Transmission Easement?

There are three main ways to establish a transmission easement. The table below presents the details.

By Agreement  The property owner and the transmission company enter into an agreement. Usually in the form of a notarial deed. They determine, among other things, the route of the installations and the remuneration.
By court rulingWhen the parties cannot reach an agreement, they may apply to the court to establish the easement for remuneration.
Prescriptive easementA transmission company can obtain a prescriptive easement if it uses the property long enough. The period is generally 30 years in bad faith or 20 years in good faith.

Prescriptive easement is exceptional in its nature. It serves to clarify the legal situation when the owner has taken no action for many years, and the devices have operated on the property without objection.

Transmission Easement

Compensation for a Transmission Easement

Contrary to popular belief, transmission easements don’t always involve standard compensation. According to the rulings of the Supreme Court, the property owner is entitled to compensation only when actual damage has occurred. For example, when the property suffers damage from a leaking pipeline or faulty power installation.

At the moment of establishing a transmission easement, the remuneration for its establishment also has a compensatory function. It compensates for the permanent limitation of ownership rights.

Examples of situations in which an owner may claim compensation:

  • a malfunction or leakage of a transmission installation,
  • permanent damage to the land or a decrease in its value,
  • improper use of the property by the transmission company.

It is important to remember that compensation claims are subject to limitation. The limitation period in general is 6 years. Yet, for properties used in business activities, 3 years.

Transmission Easement

Remuneration for a Transmission Easement

In practice, remuneration is more common than compensation. The owner is entitled to remuneration in two cases:

  1. For unauthorised use of the property, i.e. when the transmission company has used the land without an established transmission easement. The owner may then claim payment for past use.
  2. For establishing the transmission easement, i.e. when the parties have entered into an agreement or the court established the easement. Remuneration is usually a one-time payment. In exceptional cases, it may be paid periodically.

The amount of remuneration depends on many factors, including:

  • the area occupied by the installations,
  • the degree of restriction of ownership rights,
  • the market value of the property,
  • the losses suffered by the owner,
  • the impact of the installations on the usability of the remaining part of the land.

There are no statutory remuneration rates. The amount is determined by the court based on the opinion of an expert. In practice, court valuations often differ greatly from the owner’s expectations.

Transmission Easement

Prescriptive Transmission Easement

A transmission easement may be acquired by prescription. This occurs when a transmission company uses a property openly, continuously, and peacefully for many years, and the owner does not object to this situation.

Prescription aims to ensure legal stability and eliminate discrepancies between the factual and legal state. After the statutory period (20 or 30 years), the company may apply to the court for confirmation of the prescriptive transmission easement.

Transmission Easement – Summary

A transmission easement is a legal instrument that allows transmission companies to use someone else’s property lawfully. The property owner is entitled to remuneration. In exceptional cases, also to compensation. The difference between these two terms is fundamental:

  • Remuneration – compensates for the loss of part of the ownership right resulting from the establishment of the easement.
  • Compensation – redresses damage caused by improper use of the property.

Contact Us!

Do you have doubts about whether you are entitled to remuneration for unauthorised use of your land? Maybe you wonder whether a transmission easement has been acquired by prescription? Contact our law firm! We’ll review your case, assess your compensation prospects, and prepare the required application.

FAQ – 5 Most Frequently Asked Questions About Transmission Easement

1. What is the difference between compensation and remuneration for a transmission easement?

Remuneration compensates for ownership restrictions caused by the easement. Compensation relates to damage caused by improper use of the property.

2. Can a transmission company refuse to establish a transmission easement?

No. If the installations are already located on the property, the company is obliged to conclude an agreement. Alternatively, it may face a court-ordered easement with remuneration.

3. How is the amount of remuneration for a transmission easement determined?

The amount is determined based on the opinion of a property valuation expert. He considers the land’s value, the degree of ownership limitation, and the area occupied by the installations.

4. Can a transmission company acquire a transmission easement through prescription?

Yes. If used openly for 20 years in good faith or 30 years in bad faith without objection, the easement may be acquired by prescription.

5. Can the amount of remuneration for a transmission easement be negotiated?

Yes. The parties may negotiate financial terms before signing an agreement or during court proceedings. It is advisable to present your own property valuation report to support your claims.

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