The Queensland government's plans to merge power distributors Ergon and Energex into a $24-billion new energy distributor by mid-2016 has had its first restructuring casualty.
Ergon chief executive Ian McLeod – once one of Queensland's highest earners among Queensland's power companies – has been told his services are no longer needed.
Mr McLeod will finish with Ergon on February 18.
The state government plans to save $680 million by 2019-20 as part of the plan and increase jobs in North Queensland.
Treasurer Curtis Pitt confirmed the decision on Saturday afternoon.
"Ergon CEO Ian McLeod has been advised that the Shareholding Ministers' have made a decision not to reappoint him as chief executive officer," Mr Pitt said.
Mr Pitt and Queensland's Energy Minister Mark Bailey are the two shareholding ministers for Queensland's energy sector.
Mr Pitt said the decision had been made as part of the restructure of Ergon.
"The decision was made to align with the Government's objectives of business renewal for Ergon," he said.
"Shareholding Ministers have not taken this decision lightly."
Mr McLeod was appointed acting chief executive officer of Ergon Energy in October 2007 and was formally appointed as CEO on 22 February 2008 to replace Tony Bellas.
In December last year the Palaszczuk government announced Ergon and Energex would be merged into a single new network business.
The new parent company is expected to be in place by mid-2016.
It will be based in Townsville and will be the largest power company in Australia with more than $24 billion dollars in assets.
An Ergon spokesman declined to comment on Saturday afternoon.
Mr McLeod has more than 30 years' experience in the energy industry in a broad range of roles and functions.
He is also the Chairman of Ergon Energy Telecommunications, SPARQ Solutions Pty Ltd (ICT) and Queensland Futures Institute Energy Committee.
