37.—F391[(1) The Commission may grant or refuse to grant a permission to a person to whom this section applies to construct a direct line not connected to the transmission system or distribution system when initially constructed for the purpose of facilitating the supply of electricity F392[, without making such permission subject to disproportionate administrative procedures or costs].

(1A) The Commission shall not grant a permission referred to in subsection (1) unless a person has made an application for connection to and use of the transmission system or the distribution system and either—

(a) the application has been refused on the grounds of lack of capacity, or

(b) a dispute to which section 34(6) refers has been presented to the Commission for a determination and the Commission in making its determination pursuant to section 34(6) forms the view that it is in the public interest to issue a permission pursuant to subsection (1).]

F393[(1B) (a) The Commission may refuse to grant a permission if the granting of such permission would obstruct the application of the provisions on public service obligations contained in Article 9 of the Internal Electricity Market Directive.

(b) The Commission shall give duly substantiated reasons for a refusal.]

(2) A permission to construct a direct line granted by the Commission under this subsection shall require the person to whom the permission was granted to comply with such technical and other conditions, including those which may be necessary to ensure that direct lines are compatible with the transmission or distribution system, to such extent as the Commission may specify in the permission.

(3) The owner of a direct line constructed under subsection (1) may allow the direct line to be used for the transport of electricity to F394[customers within the State, individually or jointly].

(4) (a) Where there is a connection made between a direct line and the transmission or distribution system of the Board, on the application of the Board, the Commission may direct the owner of a direct line constructed under F395[section 34(1A) or (1B) or] subsection (1) to transfer the ownership of the direct line to the Board on such terms, including terms as to compensation, as may be agreed between the Board and the owner of the direct line.

F395[(aa) Where there is a connection made between a direct line constructed under section 34(1A) and the transmission system of the transmission system operator, the Commission shall, on the application of the transmission system operator, direct the owner of such direct line to transfer the ownership of the direct line to the transmission system operator on such terms, including terms as to compensation, as may be agreed between the transmission system operator and the owner of the direct line or as may be determined by the Commission.]

F396[(b) In default of agreement between the Board, or the transmission system operator, and the owner as to compensation (and save where such compensation is determined by the Commission under paragraph (aa)), such compensation shall be assessed under the provisions of the Acquisition of Land (Assessment of Compensation) Act 1919, and for this purpose the Board, or the transmission system operator, as appropriate, shall be deemed to be a public authority.]

F397[(5) This section applies to the holder of a licence, the holder of an authorisation or F398[any customer].

(6) A person to whom a permission is granted pursuant to subsection (1) may by means of that direct line supply—

(a) their own premises,

(b) their own subsidiaries, and

F399[(c) all customers within the State, individually or jointly.]]

F400[(7) The possibility of supplying electricity through a direct line under this section shall not affect the possibility of contracting electricity in accordance with Article 6 of the Internal Electricity Market Directive.]