Barnett labels Nahan quit threat 'fantasy'

The suggestion WA Treasurer Mike Nahan threatened to quit if the privatisation of electricity utility Western Power was not contemplated has been shot down by the premier.

"That's fantasy, absolute fantasy. There's no truth at all to that," Colin Barnett told reporters on Thursday.

Mr Barnett indicated Dr Nahan had strongly made the case for divesting the poles and wires operator, but said the decision on whether to go ahead would not be made before the March 2017 state election.

"He's persuasive and so he should be - I'm just very cautious on privatisations," Mr Barnett said.

"We favour it but there is a lot of work to be done before a decision can be made."

He said any deal would only be sealed if the WA government was certain there would be no negative impact on consumers, adding privatisations on the east coast had pushed electricity prices down, not up.