Essential Energy has submitted its Substantive Regulatory Proposal to the AER, detailing its captital and operational plans and the revenue it requires to deliver on services.

As part of its proposal, the company will increase street lighting service prices to local government by 2.5 per cent.

The move has angered council, which estimates its fees could go from about $78,000 to close to $158,000 per year.

"There's two components of streetlight," director of corporate services Duncan McWhirter said at last week's council meeting.

"One is the provision of the streelighting infrastructure and the other is the electricity costs.

"This increase, coupled with the freeze on the financial assistance grant, could cause some significant strain for council."

The Essential Energy increases are in line with the CPI and, if approved, the price increases would be in place from July next year.

In a letter to council, Essential Energy chief operating officer Gary Humphreys said council and residents could provide feedback on the proposed changes.

"The price adjustments for streetlighting services to apply from July 2015 will be subject to the AER's determination," he wrote.

"Historically, the cost of streetlighting services have not been subject to 'cost recovery' principles and have been cross subsidised by residential and business electricity consumers.

"The new framework set out as part of the Substantive Regulatory Proposal will be most cost-effective and aims to provide safe, efficient and effective public lighting services for local councils."

Mayor Paul Maytom has also spoken out on the proposed increase.

"This is something that has just happened ... there's been no indication this was coming," councillor Maytom said.

"We've only got until August 8 to put in a submission about this, so there's not a lot of time to get our concerns across.

"It could really hit us hard."