Deputy Premier Troy Grant said the government was hopeful of avoiding widespread job losses in the electricity industry, despite union claims as many as 4600 jobs may go.
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Labor candidate for Dubbo Stephen Lawrence said his party would also do everything it could to avoid job losses, starting by not privatising the power network.
A draft report by the Australian Energy Regulator (AER) proposed slashing the operating costs of state-owned electricity providers Essential Energy, Ausgrid and Endeavour Energy by a third in a bid to reduce power bills.
However the Electrical Trade Union claimed it would come at a great cost to jobs in the industry and also sacrifice safety and reliability for workers and the public.
It argued the cuts would be made in a bid to get the companies ready for the planned privatisation of the network if the Coalition won the next election.
Mr Grant said the National Party and the government had both made submissions to the AER suggesting it look at other ways to keep the cost of power low. He said the loss of so many jobs was unacceptable but also said unions were "embellishing the situation".
"The recommended method to save on power costs is through restructuring and job losses, the Nationals disagree with that and we have lodged a submission to the regulator," Mr Grant said.
"We don't think cutting jobs is the answer and we believe when making recommendations they haven't taken into account the vast network across the state, and safety and reliability."
Mr Grant did confirm one union claim that voluntary redundancies were being called for. He said the practise had been going on for two years as part of restructuring and said it was "nothing new".
The Nationals leader also reaffirmed Essential Energy would be protected from any such cuts. He said his party was committed to ensuring Essential remained state-owned.
Despite those claims, the unions and Labor have accused Mr Baird of intending to sell-off the entire network including Essential Energy and claim the deal to exclude the major country provider was done with the Nationals just to get the ball rolling.
Mr Lawrence said he had no doubt the entire network, including Essential Energy, would go if Premier Mike Baird was returned to power.
"The reduced price Baird will get for the poles and wires partial privatisation will provide further motive for the full sale of the network, so he can secure the financial sugar hit he needs," the Labor candidate said.
"People really should be in no doubt that the full sale will eventually happen if the partial sale occurs.
"I note Mike Baird said recently the full sale would be a "matter for the next Parliament". People will read into that a loophole big enough to drive a truck through if the government is re-elected."
Mr Lawrence said the Coalition only opposed the AER draft report because it reduced the price they would get from the sale. He echoed Labor leader Luke Foley in supporting the funding cuts and said a Labor government would avoid job cuts by not privatising the network.
"Labor is concerned about electricity prices and supports the determination because it will keep downward pressure on them. Ultimately Labor will act to protect jobs in the sector by stopping the privatisation of the poles and wires," Mr Lawrence said.
Greens candidate for Dubbo Matt Parmeter said his party was firmly opposed to any privatisation of the electricity network.
He said it was unfair to sell off a network residents had been funding for years by paying their electricity bills.