Fury over fines eclipses promise of payments in new laws on transmission access

Victorian landowners now face fines of up to $6,000 if they refuse access to their land for transmission line surveys – half the amount originally proposed in changes to electricity infrastructure laws. But they can also get more than $20,000 in payments if they do allow access. 

This is just one of the details being lost in reporting around the state’s new VicGrid-enabling legislation, passed in a late night session on Friday last week with the help of Legalise Cannabis and Animal Justice Party cross-benchers.

It’s also indicative of how badly the state government has communicated the intent of the new law, says RE-Alliance national director Andrew Bray

“The VicGrid Bill brings Victoria in line with legislation in New South Wales (NSW), and with other infrastructure projects like transport,” Bray told Renew Economy. 

“This has not been communicated well by the government. There is also a huge information gap on why these new power lines are so crucial.”

The lack of good information about what is in the new law is indicative of the lack of “clear, trusted information” which Bray says is essential for communities to participate in Australia’s shift to renewable energy. 

“Without it, the rollout of renewable energy will keep running into delays, cost blowouts and opposition,” he says.

The controversial legislation is deemed necessary to build key transmission projects VNI West and Western Renewables Link, adding enforcement powers to existing land access rights for transmission companies and establishing renewable energy zone (REZ) community funds.

It follows VicGrid’s 2025 draft community benefits guidelines and, in July, network company Ausnet rolled out a series of vastly improved compensation offers for neighbours and landowners.

Landowners are now to be paid a participation fee for allowing environmental and heritage surveys to take place. This has been doubled to $20,000; if the work takes longer than five days they’ll be paid up to $2000 per extra day, up to $50,000 per property. 

Other payments include a new, and backdated, voluntary hosting benefit payment and a radically improved option for easement offer, which was bumped by by 150 per cent to $50,000. This is a payment the landowner keeps even if the project doesn’t go ahead. 

Near neighbours will be eligible for a one-off $20,000 or $40,000 payment.

Focus on arrest powers, fines

Opponents such as conservative think tank the Institute of Public Affairs focused on the stick contained within the new law, enforcement powers that allow “authorised officers” to fine or even have landowners arrested for preventing access to their land.

The original Electricity Industry Act of 2000 enshrined land access rights, but these weren’t underpinned by enforcement powers as is the case in NSW.

Consultation with a range of opposition politicians delivered last minute amendments, including halving the originally-proposed $12,200 fine for blocking access and better protecting the new REZ community funds.

The amendments include expanding the scope of eligible community initiatives and removes provisions that let these funds be spent outside a REZ, wrote the Clean Energy Council’s new community and engagement director Nathan Hart on LinkedIn. 

He said a said a range of minor party and Coalition MPs met with the CEC and championed the changes the industry group identified.

“These changes mean that tens of millions of dollars contributed by developers will stay in REZ communities—supporting those living closest to projects and strengthening social acceptance for the energy transition,” Hart said.

Years of damage done

However, the prospect of people being forced to cooperate under threat of fines or arrest is not ideal for an industry trying to repair its reputation in communities.

Renew Economy has detailed the struggles of AusNet Services’ Western Renewables Link, where in mid-2021 communities accused the network operator of “misrepresentation, deception and lack of empathy” in its dealings.

The Australian Energy Market Operator (AEMO) botched community consultation so badly on the VNI West project that Victoria took over transmission planning in the state. 

Opposition groups such as the Wimmera Mallee Alliance and the Western Victoria Community Alliance are still very active, and Victorian Farmers Federation president Brett Hosking told the ABC last week they’re livid about the new enforcement powers.

Charlie Prell, a recently retired sheep farmer who has hosted wind turbines on his land and is the former chair of Farmers for Climate Action, is critical of the way private transmission companies are still treating communities. 

“I know there’s a really strong argument that this is critical infrastructure and it needs to be done, but that doesn’t mean you don’t do it well,” he told Renew Economy. 

“The amount of disinformation that is spread now in relation to transmission lines and renewable energy projects generally is overwhelming small regional communities that don’t have the capacity to engage in that debate in a fair discussion about the benefits, or the pros and cons.”

How to repair relations with communities who’ve been badly treated in the past is a tricky problem though. 

“The solution is not to barge the transmission lines through, but not building transmission lines isn’t a solution either,” Prell says. 

“We have to replace old transmission lines as well and that is a message that no one talks about either.”