New South Wales to axe 780 jobs in electricity mergers

New South Wales will merge three state-owned electricity distribution companies in July cutting its combined workforce of 1,300 by 780.

The merging of Ausgrid, Endeavour Energy and Essential Energy will result in the slashing of middle managment and other duplicated roles.

The move will save taxpayers $400 million over four years, according to Chris Hartcher, New Souith Wales MInister for Resources and Energy.

The savings would be fed back to households in the form of increased energy rebates, he said.

"The new, more efficient structure will also provide opportunities to put downward pressure on network charges, which contribute to around half the total cost of electricity bills," Mr Hartcher said.

The companies, often characterised as the "poles and wires" part of the electricity grid, will be merged under one corporate structure but retain their existing branding.

The combined workforce of 13,000 will be cut by 780.

Savings will help fund the State Government's family energy rebate, which is due to start at $75 in July and rise to $150 by 2014.

It will also fund low-income household rebates, which will increase from $200 to $215 in July and then to $235 by 2014.

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