Western Power will cut 175 jobs as it restructures its business ahead of a possible sale by the state government.
Chief executive Guy Chalkley said the 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 in a statement.
"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."