Electricity bills could be significantly reduced under new plan

Electricity bills may be slashed by hundreds of dollars a year if Australia’s national price watchdog goes ahead with plans to cut costs across the networks.

But power companies warn the decision will mean job losses. 

If the draft from the Australian energy regulator is adopted the state government says Ausgrid customers will on average save $189, $159 for Endeavour Energy customers and $346 for those supplied by Essential Energy.

"Prices will still be regulated, prices will go down under private ownership," Brendon Lyon from Infrastructure Partnerships Australia told 9NEWS.

But the opposition warns there's no guarantee retailers will pass on the savings.

"There is no obligation, none whatsoever under Mike Baird's proposal that even if the network distribution charge is dropped, that the retailers have to pass on those reduced charges," Mr Robertson said.

There is speculation, with the electricity companies charging lower prices, the premier's proposed sell off of the poles and wires may be generate less profit.

But the government says the lease of the poles and wires is a 99-year plan and the $20 billion infrastructure package is not in jeopardy.

A decision will be made next April, with any cost savings passed on from July.