First round of job cuts at Endeavour Energy identified

In April 2015, the Australian Energy Regulator (AER) announced significant cuts to the operating and capital expenditure allowances across Ausgrid, Endeavour Energy and Essential Energy and those determinations left Ausgrid, Endeavour Energy and Essential Energy without funding for an estimated 2750 jobs from 1 July 2015. The cost of these unfunded jobs is $30 million per month.

This week employees and unions of all three businesses are being provided details for consultation of the first phase of 1350 job reductions to be implemented this year. A second phase will follow once details of legal appeals against the AER’s determinations are known.

For Endeavour Energy, the AER cut operating expenditure by 16.9% or $49.5 million per year, leaving 255 jobs unfunded from 1 July 2015. This decision is being appealed before the Australian Competition Tribunal.

The cost of these unfunded jobs at Endeavour Energy is $2.7 million per month, money that is being borrowed.

Endeavour Energy customers have had their residential electricity bill reduced by an average of $106 per year from 1 July 2015 as a result of the AER’s determination.

Endeavour Energy has provided for consultation to employees and unions the details of the first 120 redundant positions to be implemented this calendar year.

A second phase of up to 135 redundant positions will be considered when the outcome of the Endeavour Energy appeal against the AER’s cuts to operating expenditure is known.

As a result of the AER’s decision, there is neither funding nor sustainable work available for these 255 positions.

Networks NSW Chief Executive Vince Graham said that it was regrettable and unavoidable that many dedicated employees would leave the industry given the decisions of the AER.

“Behind every job loss at Endeavour Energy is a family who deserves our respect and support in these difficult circumstances. We will offer support to these redundant employees to transition them to new jobs outside of Endeavour Energy.”

Endeavour Energy is also consulting with unions on a new redundancy policy.

This policy will maintain existing voluntary redundancy arrangements and payments, and also provide for the introduction of involuntary arrangements and payments consistent with the NSW Government’s Managing Excess Employees (MEE) Policy.

Until a new redundancy policy is implemented, Endeavour Energy’s current voluntary redundancy policy will continue to apply.

Proposed phase 1 redundant positions at Endeavour Energy by location are as follows: Glendenning – 4, Hoxton Park – 12, Huntingwood – 8, Moss Vale/Picton – 3, Narellan – 5, Parramatta – 5, Penrith – 6, Re-deployees – 30, Springhill/Shellharbour – 6, voluntary redundancy – 41, giving a total of 120.