NSW power companies to oppose bill cuts

Three state-owned NSW electricity distributors might appeal against a ruling from the energy regulator that would slash household power bills.

The Australian Energy Regulator (AER) issued a determination last month that would cut the amount "poles and wires" companies can charge customers.

This was expected to translate to hundreds of dollars in annual savings for consumers.

But the CEO of Networks NSW, which comprises Ausgrid, Endeavour Energy and Essential Energy, says his board has asked him to start preparing for an appeal against the determination in the Federal Court.

Vince Graham told a NSW parliamentary inquiry on Monday that the ruling would curtail the networks' ability to prepare for and respond to natural disasters like bushfires.

The networks would also have to borrow in order to pay out redundancy costs associated with the 2500-plus jobs "that inevitably will need to go under the AER's final determination", Mr Graham said.

Mr Graham said his board would decide on May 18 whether to launch court action, before the appeal deadline on May 21.

He has publicly supported the NSW government's plans to lease out 49 per cent of the state's electricity infrastructure, but denied he stood to gain financially under that plan.

"I do not intend to seek any executive role in any of the businesses post-transaction," he told the upper house inquiry.

Opposition Leader Luke Foley accused Premier Mike Baird of dodging questions about any appeal against the AER ruling.

"The government still owns the electricity distribution businesses in this state," he told reporters.

"They are state-owned corporations that can be directed by the state government.

"And if Mr Baird and his government allow an appeal to the regulator's determination, all they are doing is seeking to take from the wallets of the people of this state the savings to their power bills that the energy regulator wants to deliver."