Qld power firms, consumers argue revenue

Queensland's largest power network says a draft ruling by the national energy regulator could put 800 jobs at risk.

Ergon Energy says it has joined a legal push challenging the methodology used by the Australian Energy Regulator (AER) to determine the power firm's revenue allowance for the next five years.

The AER's current draft decision would make power companies spend drastically less on maintaining and upgrading their networks, and that could lower household power prices.

But Ergon chief executive Ian McLeod says adjusting to tighter revenue streams so quickly without picking up more work in other areas could hit his workforce.

"If we implemented the AER decision as it is now, in it's draft, and without picking up alternative work such as new meters et cetera, it equates to about 800 (jobs)," Mr McLeod said.

Electrical Trades Union secretary Peter Simpson lambasted Mr McLeod's warning, saying Ergon had signed up to a program of no forced redundancies.

"To come out and threaten jobs, that's repulsive," he said.

"Of course it's a threat; that's something they're very good at these CEOs."

Mr Simpson also doubted the company would be able to handle its current workloads with a reduced workforce because "there's only so much fat in the cow".

Mr McLeod promised Ergon was trying to balance the cost for customers with the safety and reliability of the network.

He said the legal challenge lodged with the Australian Competition Tribunal wouldn't change his company's submission to the AER for it's final determination, due October 31.

But Alliance of Electricity Consumers claimed if Ergon and Energex were granted their requested revenue allowance, household power bills would double over the next five years.

"They are using that gold-plated network to squeeze more and more money out of consumers every single year," spokesman Jonathan Pavetto said.

The opposition has accused Labor of trying to increase prices so it can use the higher dividends from state power firms to pay off debt, which was an election promise.

Energy and Water Supply Minister Mark Bailey said the regulator had made it absolutely clear its final determination would lead to better outcomes for consumers.

"I'm not going to speculate on decisions that haven't been made," he said.

"What we'll see at the end of October is the final decision by the regulator and then make whatever responses and adjustments we need to make."