Labor's embarrassing energy policy rethink after union concerns

Labor on Tuesday revealed plans to fix the state's energy shortfall with the creation of a new government business, the Tasmanian Power Company, that would invest in certain private wind farm developments.

Under the plan, Labor proposed to transfer Hydro Tasmania's consulting division, Entura, into the new government entity.

But Luke Crowley, state manager of Professionals Australia - the union that represents many of the 200 engineers employed by Entura - said there was concern among his members about the Labor the proposed policy that would see them transferred out to the new GBE.

"I think that policy was probably done fairly quickly, given the election was called with only four or five weeks' notice," he said.

Under the Labor plan, the new entity would help facilitate more generation in Tasmania by investing in wind projects.

"Entura's a pretty complicated old place ... there's a lot of people that work in Entura that have nothing to do with wind at all.

"If you move them all into a wind organisation, what are they going to do?"

He said he spoke to Mr Winter on Thursday morning about the issues.

"I spoke to him very amicably for about 20 minutes ... that that policy could be better.

"My understanding is that they were going to review that and not remove Entura," Mr Crowley said.

Mr Winter confirmed the story late on Wednesday.

"Entura is its own entity. Whether it sits under Tasmanian Power Co or Hydro Tasmania is not fundamental to what we're trying to do," he said.

"Our plan is about turbo charging renewable energy investment with Tasmanian-owned businesses and people."

The Liberals immediately went on the attack.

"This morning we understand Labor committed to kill its landmark power policy after just one day in the face of an angry union revolt," Energy Minister Nic Duigan said.

On his social media, Mr Duigan posted screenshots of Labor's Tasmanian Power Company policy when it was released, as well as an updated version where mention of Entura had been removed.

"Their brilliant idea of gutting Hydro and setting up a new government-owned business is dead after just 24 hours."