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You are here: Home / Articles / Job Cuts at Essential Energy

Job Cuts at Essential Energy

September 10, 2015 By editor

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NSW Government-owned corporation Essential Energy have announced the first phase of proposed workforce reductions for employee and union consultation, starting off a period of transformation for the Government entity. This will include 3 positions with Essential Energy in Forbes.

The 700 positions that have been proposed in the first phase cover all Essential Energy regions and employee categories as well as a 20% reduction in senior management positions. Almost 300 of the reductions comprise
employees who have elected to take a voluntary redundancy.

“A period of consultation with the potentially impacted employees has begun and will continue over the coming weeks to explain processes and how they may affect individuals,” said Deputy Chief Executive Officer Gary Humphreys. According to Gary, the Australian Energy Regulator’s (AER) 30% cut in operating expenditure had left Essential Energy without funding for an estimated 1,395 positions, costing the business about $15 million per month.

“We’ve got to start operating our business within the AER’s funding constraints and with fewer employees while maintaining network safety and reliability and delivering a satisfactory level of service to our customers,” Gary said.

“Following an extensive review of business operations, Essential Energy has provided details to employees and the unions around the number of proposed unfunded positions in the first phase.” “These proposed workforce reductions are regrettable yet unavoidable. We appreciate this is a difficult time for all Essential Energy employees and are committed to treating them with the highest level of respect and support throughout this process.”

A second phase of reductions of another 695 positions will be assessed once the outcome of the Australian Energy Regulator’s determination is known, which is expected to be in late 2015.

Filed Under: Articles, General Interest

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