An Electricity Regulation (Amendment) (No. 2) Bill 2026 is before Dáil Éireann. It is intended to amend the Electricity Regulation Act 1999 (the “1999 Act”) to provide for the permitting and regulation of direct lines.
It follows an earlier policy statement which we looked at here: Energy Update: Private Wires Policy Statement.
The problem with the existing regime
The explanatory memorandum accompanying the Bill notes that Ireland’s current direct lines framework under section 37 of the 1999 Act has proven extremely restrictive in practice and has stopped all development of private wire infrastructure, despite provisions under EU electricity market legislation permitting such arrangements. We analysed the background to this in our previous briefing: Private Wires: First Principles.
Key changes proposed by the Bill
The Bill would repeal section 37 of the 1999 Act and insert a new Part VA (sections 38A–38I).
Removal of the grid-refusal precondition: Section 38B(1) enables the Commission for Regulation of Utilities (“CRU“) to grant or refuse permission to a relevant person (the holder of a licence, the holder of an authorisation, a wholesale customer, or a final customer) to construct a direct line not connected to the transmission or distribution system when initially constructed for the purpose of facilitating the supply of electricity. The precondition permitted under Article 7(4) of the Internal Market in Electricity (“IME”) Directive would be removed from Irish legislation: there would no longer be a requirement for prior refusal of a grid connection or a pending connection dispute.
Scope of permissible supply: A permission-holder would be able to supply its own premises, its own subsidiaries, and any wholesale or final customer within the State, individually or jointly. The owner may also allow the line to be used for electricity transport to any wholesale or final customer.
Application process: The CRU has six months to approve or reject an application and must consult with the transmission system operator and distribution system operator before deciding. Grounds for refusal include failure to meet the criteria specified under section 38D; adverse effect on the operation of the transmission or distribution system or on security of supply; and obstruction of public service obligations under Article 9 of the IME Directive. Duly substantiated reasons must be given for any refusal.
Criteria-setting: Section 38D requires the CRU to set criteria by order that are objective and non-discriminatory, not subject to disproportionate administrative procedures or costs, and do not place unjustified obstacles on proposed direct lines that could facilitate renewable, sustainable or alternative energy. How the CRU exercises this power will be decisive for how the regime works in practice. For example, any technical, safety or other specifications that are required to be met in respect of the proposed direct line should take into account internationally accepted norms and standards. It will be important for industry to engage with the consultations that will precede the setting of criteria.
Deemed permissions: Section 38E empowers the CRU to class-permit specified categories of direct line by order, subject to conditions and a prior-notification requirement. This could provide a lighter-touch route for smaller or more straightforward projects.
Safety: Section 38F empowers the CRU to make safety regulations covering installation, operation, maintenance, and decommissioning, with criminal penalties for non-compliance of up to €50,000 or 3 years for conviction on indictment. Section 38G provides for electricity safety officers with inspection and warrant powers. Sections 38H and 38I preserve the existing ownership-transfer mechanism and introduce a public register of all permitted direct lines.
As the Bill progresses it would be worth considering the definition of supply in the 1999 Act to ensure that the scope of the Bill can be construed consistent with the purposes outlined in the explanatory memorandum. Overall, however, publication of the Bill is a positive step to help optimise the potential to deploy greater electricity generation capacity and infrastructure requiring an energy supply.