The ‘direct line’ is a legal concept that has its origins in the very first Electricity Directive of 1996 (Directive 96/92/EC). The direct line is intended to enable market participants to establish a direct physical connection between a generator and a consumer themselves, for example to circumvent grid congestion problems. The definitions of a direct line and an electricity grid are mutually exclusive: if a connection is a direct line, it is not part of the electricity grid and is therefore exempt from the regulations applicable to electricity grids.

The Dutch Electricity Act 1998 has recognised the direct line since 2012. The practical relevance of the direct line has diminished in recent years due to the extensive cable-pooling facility provided for in the Energy Act. Cable pooling currently allows up to four installations to be pooled, including consumer installations. What is possible with the direct line is therefore, in most cases, also possible using cable pooling. To date, only 55 direct lines have been registered with the ACM in the Netherlands, the majority of which date from before the cable-pooling scheme.

A key distinction between the direct line and cable pooling (in short: the sharing of a connection subject to certain conditions) is that cable pooling is a specific Dutch legal concept that has no basis in European energy law. Consequently, the legal frameworks governing cable pooling are entirely governed by Dutch law, whilst direct lines must, in principle, be made possible by Member States in their national legislation in accordance with the scope and provisions of Directive (EU) 2019/944 (hereinafter the ‘Electricity Directive’). Consequently, the Dutch concept of a ‘direct line’ may also be interpreted more narrowly in a manner ‘consistent with the Directive’, and may even be set aside on the basis of the direct effect of directives under EU law. Against this background, the ruling of the Court of Justice of 17 September 2026 in two joined cases concerning the interpretation of the concept of a ‘direct line’ is directly relevant to the Netherlands.

Conclusion

To date, the ‘direct line’ has been of limited relevance in the Netherlands. This is due, on the one hand, to the technical requirements of the configuration and the absence of a right to an allocation point for direct line customers, and, on the other hand, to the attractive and flexible cable-pooling scheme. With its judgment, the Court of Justice clarifies the European concept of the ‘direct line’, making it clear that two major drawbacks of the Dutch ‘direct line’ are incompatible with the European ‘direct line’. It is up to the Dutch legislature to bring the Dutch concept of the ‘direct line’ and the rights of direct line customers under the Energy Act into line with the Electricity Directive. Until then, Dutch developers and businesses may already be able to rely on the Directive-compliant interpretation and/or direct effect of EU law in order to make use of the ‘direct line’ (although a legal assessment and, where necessary, consultation with the system operator and/or the ACM is advisable to minimise enforcement risks). The direct line thus becomes a fully-fledged alternative to – or supplement to – cable pooling, with different conditions and therefore different possibilities.

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