Legal Challenges in Acquisition and Appropriation of Lands for Power ‎Distribution Projects

One of the primary challenges faced by the Ministry of Energy and its affiliated electricity companies is the appropriation and acquisition of land for the purpose of power distribution services. This often leads to objections and the filing of lawsuits for compensation related to lands used for the passage of transmission lines or the establishment of power distribution facilities. According to Article 18 of the Electricity Organization of Iran Act (1967), the Ministry of Energy and its subsidiaries have the right to perform such actions without any payment outside the legal boundaries of cities. However, some courts, by invoking the Law on the Manner of Purchasing and Appropriating Lands Required by the Government and Executive Agencies (1979), have adopted inconsistent approaches, sometimes treating these actions as acquisition and issuing judgments for compensation. In this article, to achieve a consistent legal approach and judicial unity in this matter, the legal rights and obligations of regional electricity companies, existing judicial and legal perspectives, as well as the challenges and issues faced, have been examined. Proposals for amending current practices and laws have also been provided. This research employs a descriptive-analytical methodology and utilizes library resources. The findings indicate that to resolve this legal challenge, it is necessary to distinguish between voluntary (ordinary) appropriation by executive agencies and compulsory (immediate) acquisition, as well as to differentiate these from acts of property occupation for utilization purposes (free usufruct rights). Furthermore, within this category, a distinction should be made between properties outside urban boundaries and those within urban areas. The Ministry of Energy and its affiliates should be obligated to compensate for the benefits derived from properties located within city boundaries but not for properties situated outside urban boundaries at the time of occupation. Additionally, the legal evaluation of properties later incorporated into urban areas necessitates the presence of a technical expert panel with judicial authority, which should be addressed in the amendment of the Electricity Organization Act.