Future legislation refining the framework of telecommunications regulation will establish the regulator's office as a three-member commission, similar to the Commission for Electricity Regulation, the Minister for Public Enterprise indicated yesterday.

In a policy paper on governance and accountability in the regulatory process, Ms O'Rourke also indicated that penalties for breaches of regulatory acts in the energy, transport and communications sectors were too low.

The proposal to establish three-member commissions in future legislation on regulation is seen as a means of addressing the perceived loopholes in the powers of the Office of the Director of Telecommunications Regulation. While the use of individual regulators was seen as fostering consistency in their decisions, Ms O'Rourke's paper said the use of individual regulators could lead to "undue personalisation" of the regulatory process.

Submissions to the review also argued that individual regulators could be more susceptible to "regulatory capture". This was defined as the regulator equating the public interest with the interests of a body it regulates.

The proposals will be used as guiding principles for future legislation on the regulation of the utility sector.

But it is understood that legislation establishing the office of the airports regulator, Mr Bill Prasifka, will not include provision for a three-member commission. This is expected before the summer recess of the Dail.

Ms O'Rourke's paper also indicated that the electricity commission's remit will be extended to include the gas sector, which is seen as a complementary industry. Legislation in this area is expected next autumn.

Regulators will be required to submit strategy statements to the Minister, to draw up an annual work programme and to produce an annual report. The paper also said the Oireachtas should be granted the authority to request regulators to account for their plans and performance to its committees at least annually.

"Where the Oireachtas makes recommendations relevant to the functions of a regulator, these ought to be taken into account and commented upon in the authority's annual report."

Welcoming this proposal, Labour's public enterprise spokesman, Mr Emmet Stagg, said all regulators should be required to appear before a Dail committee with specific responsibility for regulatory developments.

On penalties for breaches of the regulatory Acts, the paper said: "It is becoming evident that several of the fines and other penalties associated with violations of regulatory rules need to be adjusted from their current levels to reflect the financial scale of the relevant industry and its participants." Stating that it was inappropriate for regulators to have the power to impose penalties directly, the paper proposed that regulators be given the power to apply to the courts for "appropriate action" where the Acts are breached.

The paper also proposed legislation to clarify the right to judicial review of regulators' decisions. Unless decided otherwise by the courts, the paper said, the decision of the regulator should stand while under review.

This measure was welcomed by the telecoms regulator. The Supreme court has reserved judgment in the case of her challenge to a High Court judgment which found against her decision to award the third mobile phone licence to US firm Meteor. Meteor's licence has been suspended pending resolution of this case.