Development on Land and Property Compensation Criteria for Energy Network Construction

Abstract

Compensation for property-use restrictions in the case of energy network construction must reflect and fully cover impacts arising from property use restrictions. It shall not enrich the receiving party because the paid compensation will be incorporated into energy service fees which are ultimately passed on to the energy users. However, results of legal effective evaluation conducted by the researchers and the Office of Energy Regulatory Commission as well as those of comparative study reveal that the Regulation of Energy Regulatory Commission re: Criteria Methods and Condition on Compensation Calculation and Payment B.E. 2552 (2009) as amended by the Regulation No. 2 (2010) the Regulation No.3 (2013) and the Regulation No.4 (2021) lacks capability to fairly compensate the affected property owner and possessors. This is because its inability to compensate a property owner or possessors holding a land located inside and outside of the announced network area. It does not have tangible land valuation criteria and methods. Importantly, the compensation amount is based on fixed property-use restriction payment rates. Therefore, this research proposes a new Energy Regulatory Commission’s regulation that extends its coverage to a property owner or possessors holding a land located inside and outside of the announced network area. It contains details on tangible land valuation criteria and methods. It replaces the fixed property-use restriction payment rate with the flexible determination relying on the highest and best use principle. It allows competent officials to seek support in determining the compensation for easement from independent valuers. In ensuring that the compensation amount will be systematically determined in accordance with the highest and best use for land principle, this research defines and explains determining factors of land potential and land development options in the guideline on criteria and methods for determination and payments of compensation for property-use restrictions in the case of energy network construction.