Judicial principles and studies
Fair Compensation and an Electric Company's Right to Erect Installations on Third-Party Land
The study outlines the electricity company's statutory power to place lines and installations on others' land in exchange for fair compensation, and the limits on injunction claims against such works.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The points explain the statutory entitlement of an electricity licensee to extend or place overhead or underground electrical lines and installations on others' land (excluding archaeological sites) in return for paying fair compensation, and the legal limits of injunction claims seeking to prevent such works.
Summary
- An action to prevent opposition requires proof of ownership and an existing dispute, but it cannot be used to stop acts that the law authorizes for public benefit, such as erecting power poles; affected owners' remedy is compensation rather than removal. - The electricity statute grants the licensee the right to locate lines or installations under or above land, while imposing an obligation to pay fair compensation for damage to property. - Compensation is measured by the diminution in value of the affected land, i.e., the difference between its value before and after the installation. - The statutory coordination provisions on arrangements and costs for extending lines over roads, streets and public squares do not apply to actions seeking to prevent opposition or to direct compensation claims.
Practical significance
Property owners cannot generally obtain injunctive relief to stop legally authorized electricity installations; their available remedy is a compensation claim calculated by reference to loss in land value. The licensee may proceed under its statutory right but must provide fair compensation. This is an educational summary and not judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.