ESSENTIAL Energy's capacity to respond to the MIA's blackouts, storm damage and other major incidents could suffer a major blow as the company plans to cut more jobs to ensure customers can afford electricity.
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An internal document obtained by the Electrical Trades Union shows that Essential Energy plans to slash one in five regional positions by 2024, impacting 500 workers.
The revelation comes after Essential Energy last month announced that 182 jobs would be cut from their workforce this year.
The union claims this has reduced the number of skilled frontline workers available to respond to storm - and electrical-related incidents.
"Essential Energy has already been cut to the bone, we've seen the workforce almost halved in recent years and dozens of depots shut," union secretary Justin Page said.
"With one in every five workers facing the chop, there is no question that regional communities will be devastated and service delivery will be greatly impacted.
"For towns already struggling with drought, the loss of these skilled jobs - forcing many families to move away - will have devastating flow-on effects on the local economy."
In response, an Essential Energy spokesperson said managing the size of its workforce is needed to efficiently deliver safe and reliable electricity supply to "maintain downward pressure on electricity prices".
"As the energy industry continues to evolve, electricity affordability remains a key challenge for many of our customers," the spokesperson said.
"Lower energy prices across regional, rural and remote NSW are in the best interests of our customers."
The spokesperson said during the five-year regulatory period to June 30 this year, Essential Energy delivered a 40 per cent reduction in network charges.
"To be clear, we have specifically briefed employees and the unions on projections for the shape and size of our workforce over the past three years," the spokesperson said.
"The forecast employee numbers were clearly identified in materials provided last month to all Essential Energy employees and other stakeholders, including ETU representatives."
The spokesperson also said the forecast reduction to 2500 employees by 2024 includes the proposed workforce reductions currently in consultation.
The union said Essential Energy's workforce has nearly halved since 2012 as more than 2000 jobs have been lost.
It has written to Essential Energy CEO John Cleland outlining a series of proposals that provide alternatives to job losses.
First is the in-sourcing of work currently contracted out - as other NSW electricity distributors have done - including pole replacements, service wire replacements, street lighting maintenance, vegetation management, yard maintenance, and information and communications technology functions.
Second is to enter the contestable metering market and third is to enter the renewable energy market.
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An ETU statement said that in relation to the second and third proposals, Essential Energy workers already possess the required skill sets and that there is a significant amount of renewable projects being constructed across regional NSW.
The ETU has also provided a written briefing to NSW Deputy Premier John Barilaro outlining alternatives to job cuts.
In July after the 182 job cuts announcement, Deputy Premier John Barilaro spoke with Essential Energy CEO John Cleland.
"I reiterate my disappointment at proposed job cuts at Essential Energy, and call on Essential Energy to immediately halt any plans to cut jobs," Mr Barilaro said.
"I will continue to meet with Essential Energy to reinforce the need to protect jobs in regional NSW."
Data about regional job cuts in the next five years was requested, but it is reportedly unavailable.
The organisation operates electricity poles and wires across 95 per cent of NSW.
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