Dáil Éireann debate -
Wednesday, 29 Mar 2000

Vol. 517 No. 1

Written Answers. - Regulatory Authority.

Phil Hogan

Question:

62 Mr. Hogan asked the Minister for Public Enterprise the changes, if any, to be made to the structure and role of the ODTR and the existing energy regulator in view of the publication of her policy proposals for the regulatory process; if there will be a supervisory body of each of the regulators; and the relationship, if any, all regulators will have with the Competition Authority. [9052/00]

Minister for Public Enterprise (Mrs. O'Rourke)

As indicated in my recently published policy proposals on governance and accountability in the regulatory process, I am of the view that, as a general rule, a regulatory authority should comprise three members. The legislation governing the Commission for Electricity Regulation already provides for appointing a commission of three members and I will, in the coming months, be giving consideration to appointing a three person commission in the context of expanding the role of the commission to encompass other aspects of the energy sector. I also propose to provide in statute for a three person commission in the case of other regulatory bodies in the telecommunications and aviation sectors. Work is proceeding in my Department on Bills to deal with this, as well as other aspects of my recent policy proposals.

I have no proposals for a supervisory body of regulators. I do see the need, however, for a periodic formal evaluation of regulatory developments within the utilities area, including an assessment of the continued justification for intervention in the context of the achievement of national economic, social and regional objectives. As I have indicated in my proposals, such reviews should take place on a regular and systematic basis, given the changing nature of technologies and evolution in markets.

Finally, the Deputy inquires about the relationship, if any, regulators will have with the Competition Authority. It is important that there be clarity as to the respective roles of the Competition Authority and the sectoral regulators. Certain issues concerning this relationship are being addressed by the competition and mergers review group, which is due to report to the Tánaiste and Minister for Enterprise, Trade and Employment shortly. The Tánaiste has also indicated her intention to establish a group to consider broader issues concerning the operation of competition in regulated sectors.

I recognise the importance of the work initiated by the Tánaiste and I will engage in further consultation with the Tánaiste when the reports become available from the competition and mergers review group and the proposed group to examine the operation of competition in regulated sectors. In the meantime, I would encourage the closest co-operation between the sectoral regulators and the Competition Authority.