Part XI

Statutory Undertakers

Compensation

Measure of compensation to statutory undertakers, etc.
280
1
Where statutory undertakers are entitled to compensation—
a
as mentioned in subsection (1), (2) or (4) of section 279;
b
under the provisions of section 115 in respect of an order made under section 102 or paragraph 1, 3, 5 or 6 of Schedule 9, as modified by section 270; or
c
in respect of a compulsory acquisition of land which has been acquired by those undertakers for the purposes of their undertaking, where the first-mentioned acquisition is effected under a compulsory purchase order confirmed or made without the appropriate Minister’s certificate,
or the operator of an electronic communications code network is entitled to compensation as mentioned in section 279(3), the amount of the compensation shall (subject to section 281) be an amount calculated in accordance with this section.
2
Subject to subsections (4) to (6), that amount shall be the aggregate of—
a
the amount of any expenditure reasonably incurred in acquiring land, providing apparatus, erecting buildings or doing work for the purpose of any adjustment of the carrying on of the undertaking or, as the case may be, the provision of the electronic communications code network rendered necessary by the proceeding giving rise to compensation (a “business adjustment”);
b
the appropriate amount for loss of profits; and
c
where the compensation is under section 279(2) or (3), and is in respect of the imposition of a requirement to remove apparatus, the amount of any expenditure reasonably incurred by the statutory undertakers or, as the case may be, the operator in complying with the requirement, reduced by the value after removal of the apparatus removed.
3
In subsection (2) “the appropriate amount for loss of profits” means—
a
where a business adjustment is made, the aggregate of—
i
the estimated amount of any decrease in net receipts from the carrying on of the undertaking or, as the case may be, the provision of the electronic communications code network pending the adjustment, in so far as the decrease is directly attributable to the proceeding giving rise to compensation; and
ii
such amount as appears reasonable compensation for any estimated decrease in net receipts from the carrying on of the undertaking or, as the case may be, the provision of the electronic communications code network in the period after the adjustment has been completed, in so far as the decrease is directly attributable to the adjustment;
b
where no business adjustment is made, such amount as appears reasonable compensation for any estimated decrease in net receipts from the carrying on of the undertaking or, as the case may be, the provision of the electronic communications code network which is directly attributable to the proceeding giving rise to compensation.
4
Where a business adjustment is made, the aggregate amount mentioned in subsection (2) shall be reduced by such amount (if any) as appears to the Upper Tribunal to be appropriate to offset—
a
the estimated value of any property (whether moveable or immoveable) belonging to the statutory undertakers or the operator and used for the carrying on of their undertaking or, as the case may be, the provision of the electronic communications code network which in consequence of the adjustment ceases to be so used, in so far as the value of the property has not been taken into account under paragraph (c) of that subsection; and
b
the estimated amount of any increase in net receipts from the carrying on of the undertaking or the provision of the electronic communications code network in the period after the adjustment has been completed, in so far as that amount has not been taken into account in determining the amount mentioned in paragraph (b) of that subsection and is directly attributable to the adjustment.
5
Where a business adjustment is made the aggregate amount mentioned in subsection (2) shall be further reduced by any amount which appears to the Upper Tribunal to be appropriate, having regard to any increase in the capital value of immoveable property belonging to the statutory undertakers or the operator which is directly attributable to the adjustment, allowance being made for any reduction made under subsection (4)(b).
6
Where—
a
the compensation is under section 279(4); and
b
the acquiring or appropriating authority carry out the works,
then, in addition to any reduction falling to be made under subsection (4) or (5), the aggregate amount mentioned in subsection (2) shall be reduced by the actual cost to the authority of carrying out the works.
7
References in this section to a decrease in net receipts shall be construed as references—
a
to the amount by which a balance of receipts over expenditure is decreased;
b
to the amount by which a balance of expenditure over receipts is increased; or
c
where a balance of receipts over expenditure is converted into a balance of expenditure over receipts, to the aggregate of the two balances;
and references to an increase in net receipts shall be construed accordingly.
8
In this section—
- “proceeding giving rise to compensation” means—
a
except in relation to compensation under section 279(4), the particular action (that is to say, the decision, order, extinguishment of a right, imposition of a requirement or acquisition) in respect of which compensation falls to be assessed, as distinct from any development or project in connection with which that action may have been taken;
b
in relation to compensation under section 279(4), the circumstances making it necessary for the apparatus in question to be removed or re-sited;
“the appropriate Minister’s certificate” means such a certificate as is mentioned in section 16 of or paragraph 3 of Schedule 3 to the Acquisition of Land Act 1981.
Pt XI (ss. 262-283) applied (10.11.1993) by 1993 c. 28, s. 169, Sch. 20 Pt. II para. 19(3); S.I. 1993/2762, art. 3
Pt. XI (ss. 262-283) modified (1.11.1995) by 1995 c. 25, s. 96, Sch. 13 para. 15(4)(a) (with ss. 7(6), 115, 117); S.I. 1995/2765, art. 2
Pt. XI (ss. 262-283) applied (25.11.1998 for specified purposes otherwise 3.7.2000) by 1998 c. 45, s. 23, Sch. 6 para. 16(2)(3); S.I. 1998/2952, art. 2(1); S.I. 2000/1173, art. 2(2)(c)
Pt. XI (ss. 262-283) modified (1.11.1995) by 1995 c. 25, s. 96, Sch. 14 para. 13(4) (with ss. 7(6), 115, 117); S.I. 1995/2765, art. 2
S. 280 applied (10.11.1993) by 1993 c. 28, s. 169, Sch. 20 Pt. II para. 12(6); S.I. 1993/2762, art. 3
S. 280 applied (10.11.1993) by 1993 c. 28, s. 169, Sch. 20 Pt. II para. 14(8); S.I. 1993/2762, art. 3
S. 280 applied (1.10.1998) by 1975 c. 70, Sch. 4 Pt. III para. 11(7), 13(9) (as inserted (1.10.1998) by 1998 c. 38, s. 127, Sch. 13 para. 3 (with ss. 139(2), 141(1), 143(2)); S.I. 1998/2244, art. 4)
S. 280 applied (25.11.1998 for specified purposes and otherwise 3.7.2000) by 1998 c. 45, s. 23, Sch. 6 paras. 9(6), 11(8); S.I. 1998/2952, art. 2(2); S.I. 2000/1173, 2(2)(c)
Ss. 275-278, 279(2)-(4), 280, 282 modified (3.6.1999) by S.I. 1999/1555, art. 11, Sch. 2 para. 1
Ss. 275-278, 279(2)-(4), 280, 282 modified (21.7.1999) by S.I. 1999/2129, art. 20, Sch. 3 para. 1
Ss. 275-278, 279(2)-(4), 280, 282 modified (20.8.1999) by S.I. 1999/2336, art. 25, Sch. 6 para. 1
Ss. 275-278, 279(2)-(4), 280, 282 modified (23.8.1999) by S.I. 1999/2981, art. 29, Sch. 11 para. 1
Ss. 279(2)-(4), 280, 282 applied (with modifications) (18.7.2001) by S.I. 2001/2870, art. 25, Sch. 4
Ss. 279(2)-(4), 280, 282 applied (24.7.2001) by S.I. 2001/3627, arts. 63, 64, Sch. 11 paras. 1, 2, Sch. 12 para. 5(3)
S. 280(6) modified (18.12.1996) by 1996 c. 61, s. 8(5)
1981 c. 67.
S. 280 applied (with modifications) (14.3.2002) by S.I. 2002/412, art. 35, Sch. 5 para. 1 (with art. 38)
Words in s. 280 substituted (25.7.2003 and 29.12.2003 in accordance with the commencing S.I.s) by Communications Act 2003 (c. 21), ss. 406, 411, Sch. 17 para. 104(a) (with transitional provisions in Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with transitional provisions in arts. 3-6); S.I. 2003/3142, arts. 1(2), 3(2) (with art. 11)
Words in s. 280 substituted (25.7.2003 and 29.12.2003 in accordance with the commencing S.I.s) by Communications Act 2003 (c. 21), ss. 406, 411, Sch. 17 para. 104(b) (with transitional provisions in Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with transitional provisions in arts. 3-6); S.I. 2003/3142, arts. 1(2), 3(2) (with art. 11)
S. 280(6) modified (22.7.2008) by Crossrail Act 2008 (c. 18), s. 9(4)(5)(b)
S. 280 applied (1.12.2008) by Housing and Regeneration Act 2008 (c. 17), s. 12, 325, Sch. 4 para. 7(2); S.I. 2008/3068, art. 2(g) (with savings and transitional provisions in arts. 6-13)
S. 280 applied (1.12.2008) by Housing and Regeneration Act 2008 (c. 17), s. 12, 325, Sch. 4 para. 14(2); S.I. 2008/3068, art. 2(g) (with savings and transitional provisions in arts. 6-13)
Words in s. 280(4)(5) substituted (1.6.2009) by The Transfer of Tribunal Functions (Lands Tribunal and Miscellaneous Amendments) Order 2009 (S.I. 2009/1307), art. 5(1)(2), Sch. 1 para. 210
S. 280 applied (with modifications) (2.1.2018) by The Boston Barrier Order 2017 (S.I. 2017/1329), art. 1, Sch. 6 para. 1 (with arts. 55-57, Sch. 8 para. 13)
S. 280(6) modified (11.2.2021) by High Speed Rail (West Midlands - Crewe) Act 2021 (c. 2), ss. 11(3)(4), 64(1)
S. 280 modified (16.12.2015) by The Network Rail (Tinsley Chord) Order 2015 (S.I. 2015/1876), art. 1, Sch. 7 paras. 2-5
S. 280 applied (with modifications) (29.7.2021) by Space Industry Act 2018 (c. 5), s. 70(1), Sch. 9 para. 3(1)(a), (2); S.I. 2021/817, reg. 2, Sch. para. 113 (with reg. 3)
S. 280 applied (with modifications) (1.10.2011) by The Infrastructure Planning (Changes to, and Revocation of, Development Consent Orders) Regulations 2011 (S.I. 2011/2055), regs. 1, 66
S. 280 applied (with modifications) (2.8.2022) by The Network Rail (Oxford Station Phase 2 Improvements (Land Only)) (No. 2) Order 2022 (S.I. 2022/872), art. 1(1), Sch. 4
S. 280 applied (with modifications) (19.12.2017) by The Network Rail (Buxton Sidings Extension) Order 2017 (S.I. 2017/1150), art. 1, Sch. 11 para. 1 (with art. 32(2), Sch. 11 para. 3)
S. 280 applied (with modifications) by 1980 c. 66, Sch. 5 Pt. 2 para. 1 (as amended (5.3.2015) by Infrastructure Act 2015 (c. 7), s. 57(1), Sch. 1 para. 65(3)(a); S.I. 2015/481, reg. 2(a))