The Electrical Trades Union has released a letter from Essential Energy outlining redundancy plans resulting from the Australian Energy Regulator’s April determination on the revenue the electricity network can charge.

The regulator said its determination should save Essential Energy customers about $313 a year in 2015-16.

Essential Energy deputy chief executive officer Gary Humphreys said in the letter to the ETU secretary Steve Butler that the consequences of the determination were “significant and immediate”.

“As a consequence of the implementation of the AER’s final determination on 1 July 2015 Essential Energy will not have funding for 1395 jobs across the network,” he wrote. “The monthly cost of those unfunded positions will be $14.7 million.

“Given the overall financial impact of the AER’s determination, the cost of unfunded jobs will need to be met through borrowings that will not be recovered by revenue collected from electricity consumers.” 

There will be two phases of redundancies, the first the nomination of 700 redundant positions in early September for union and employee consultation.

The letter, published on the ETU website, says that the names of some of those whose jobs will go are already known. 

Essential Energy is appealing some aspects of the AER’s determination and the second phase of up to 700 additional redundancies will follow the outcome of those appeals.

The cuts equate to about 30 per cent of Essential Energy jobs. 

Essential Energy has depots in both Forbes and Parkes and a training centre in Parkes.