Court ruling could impact interconnector project

A new court ruling could have “profound implications” for local landowners and the future development of the North South Interconnector, after it was decided compensation can now include the depreciation of land value where electricity lines are installed across private property.

The Supreme Court decision was delivered last week in a case that had seen a Cavan farmer awarded statutory compensation of €39,500.

The five-judge court rejected arguments by the ESB that a property arbitrator - in this case the late Peter Good - was not entitled to include compensation for land depreciation, referred to in 19th century law as ‘injurious affection’.

The decision could necessitate a re-evaluation of the potential bill for compensation owed to hundreds of farmers and landowners impacted by the proposed route of the North South Interconnector. The latest development could put an already-delayed project back even more years, and add millions to the mounting costs of the project.

The O’Reilly’s entered into ‘Landowners Agreements’ with the ESB in 2011.

The arbitrator Mr Good made an award to Peter and Rose O’Reilly concerning ESB power lines installed across their farm and lands at Crubany, Poles, outside Cavan Town.

The national electricity provider successfully challenged this to the High Court, only for the O’Reillys to appeal the outcome. On Friday last, June 6, Mr Justice Brian Murray, sided with the local couple stating that the law permits compensation despite not explicitly mentioning it.

While Justice Murray found Mr Good was incorrect in awarding compensation for anticipated future access rights, he did uphold the High Court’s finding that Mr Good had not in any way violated the ESB’s right to fair procedure.

Sadly Mr O’Reilly passed away on October 5, 2024, but his wife Rose and son Myles were present to hear last week’s court decision.

The case by the O’Reillys against the ESB was led by Peter Bland SC, instructed by Michael O’Donnell BL solicitor Gabriel Toolan of Walter P. Toolan & Sons from Ballinamore.

Speaking to The Anglo-Celt following the decision, Mr Toolan stated his belief that the ruling will have “profound implications for the North South Interconnector. Had the outcome of the High Court judgement stood, the amount of compensation landowners could receive would have been greatly diminished, because they wouldn’t have been entitled to injurious affection.

“What ESB had said was compensation was limited only to the land under the line, and the totality wasn’t affected. The Supreme Court said absolutely not, and the term compensation means injurious affection, essentially the knock-on effect on all of the land.”

Householders in the path of North South Interconnector pylons had been offered up to €30,000; while homeowners within 200 metres were offered packages of between €5,000 and €30,000.

Engagement with an estimated 400 affected landowners across counties Cavan, Meath and Monaghan commenced in October 2023. Compensation in that regard stretched to €50,000 for each pylon and an additional €48,000 for 300 metres of overhead line crossing lands.

Mr Toolan believes that, for landowners, the Supreme Court outcome establishes an entitlement for compensation for “all of the land affected, not just only the land affected by power lines”.

He says there was a “huge challenge” in the OReilly’s bringing their case, and he praised their courage in instructing his firm to press the matter. “They were being denied the full compensation they were entitled to. You’re talking about the bread and butter farming stock of Cavan and neighbouring counties who are directly affected by this, and now massive issues countrywide as well.”

Fianna Fáil County Councillor Clifford Kelly said local landowners would “take heart” from the court decision.

“It’s a very substantial outcome in one respect. But from that everything comes into question now. It’s certainly not as straightforward as the ESB were making it out. [The ruling] takes into consideration the impact on all the land, and I congratulate the O’Reilly family from Crubany for taking this case.”

He was speaking after elected members met for their June monthly meeting, where Director of Services Brendan Jennings informed councillors that officials from three planning authorities - Cavan, Meath and Monaghan - had met representatives from Eirgrid and ESB Networks on May 30.

Central to discussions once again were issues around “planning conditions and compliance”.

“There is a long way to go yet,” stressed Mr Jennings. “There is still a lot of work to do.”

In a statement to The Anglo-Celt, a spokesperson for the ESB said that the utilities company notes the Supreme Court ruling, saying it “will take the time to evaluate the decision and its impact”.

A spokesperson for Eirgrid stated: “As we are not a party to the case, we will not be commenting at this time.”

A spokesperson for the Department of Climate, Energy and the Environment however welcomed “the clarity provided” by the Supreme Court judgement.

“We are currently considering the impacts of same,” they said, reminding that the Commission for Regulation of Utilities (CRU) is currently reviewing, and will by year end approve Price Review 6, to approve investment over the period 2026-2030.

The price review is expected to see a step change in grid delivery and EirGrid, as Transmission System Operator, has responsibility for the development of the Transmission Network and ESB Networks, as Distribution System Operator, has responsibility for the development of the Distribution Network.

“The Department will continue to work with System Operators to assist with the accelerated delivery of electricity infrastructure for the betterment of all cit izens and society,” said the spokesperson.