Transpower says its payments to some Otago landowners for disruption during a lines upgrade will not lead to widespread compensation.
130 landowners between the Clutha and Waitaki rivers will receive one-off payments from Transpower, worth $2 million.
Recent upgrade projects, including the Roxburgh-Islington line in South Canterbury, have been blighted by disputes with farmers about compensation for access to their land.
Transpower says the Otago payments will not set a precedent.
But South Canterbury farmer Jeremy Talbot, who has been battling Transpower for annual pylon payments for years, says the deal will only turn more farmers against Transpower.