Western Power has announced it will cut 175 jobs as it works to transform the business ahead of its possible sale by the WA Government.

Key points: 175 more jobs to go through voluntary redundancies

175 more jobs to go through voluntary redundancies In June, 326 employees took voluntary redundancies

In June, 326 employees took voluntary redundancies WA Government plans to privatise Western Power

Acting chief executive Guy Chalkley said in a statement around 175 employees would be offered "voluntary separation".

"Western Power is continuing a transformation program aimed at improving customer affordability and long-term business sustainability," he said.

"If we achieve this, we will make Western Power one of the top electricity businesses nationally, whilst still delivering safe and affordable electricity to customers.

"Earlier in the year we made changes to reflect the downturn in the amount of work we are doing in the field. We are now seeking to align our head office business support areas and processes to the work we are doing in the field.

"We are committed to consulting with our employees before we reach any decisions, at this stage 175 roles are potentially affected.

"We will be offering all employees voluntary separation, to empower them to make a decision that's right for their individual circumstances."

In June the utility shed 326 staff through a voluntary redundancy process.

At the time, Western Power said it no longer needed the positions due to a reduction in workload, the economic slowdown and the rise of solar power.

Job losses related to sale: Opposition

Opposition Leader Mark McGowan said 175 families were "now going to lose their breadwinner".

"The biggest issues confronting Western Australia is jobs and job security, and all the Barnett Government is doing is sacking people," he said.

"This is just softening Western Power up for sale. They've got a plan to privatise Western Power and that will mean more job losses, higher costs and less services for West Australians."

Australian Services Union branch secretary Wayne Wood said the job cuts were geared toward finding an offshore buyer.

"It appears that everything we're going through at the moment is about trimming the organisation up so that it looks very attractive to foreign investors," he said.

He said the cuts were widespread and included both white collar and blue collar workers.

Mr Wood said morale among employees was low.

"Some people have done their apprenticeships there, their traineeships there, they've been there for quite a while," he said.

"People are paranoid and looking over their shoulder, they expect to get tapped on the shoulder, that doesn't make for a very good work environment."

But Treasurer Mike Nahan said the union and the Opposition were "scaremongering" and the redundancies were unrelated to privatisation.

"This has absolutely nothing to do with any potential sale of Western Power," he said in a statement.

"The Labor Party and their union mates in the ASU and the ETU are simply making more baseless and false claims, and they need to be held to account for this scaremongering."

In February, the State Government flagged a proposed sale of the utility, confirming its intention in the May budget.

It hopes to raise $12 billion from the sale, which formes the centrepiece of its privatisation strategy to reduce debt and fund future infrastructure.

However, Premier Colin Barnett has since said the sale would only go ahead with public support, despite Dr Nahan's insistence the sale must proceed.

A Western Power spokesman said the utility employed around 3,000 staff in total.