Power generation at the Yallourn power station, in the Latrobe Valley, was cut by 20 per cent yesterday as part of industrial action over a pay dispute.

Workers at the station ended their 24-hour strike this morning.

The union and the owner of the plant, Energy Australia, have been in negotiations over a new wage agreement for eight months.

Greg Hardy of the Construction Forestry Mining and Energy Union (CFMEU) says workers will strike again next Wednesday.

"We can do more of the same. We can increase the length of the strike," he said.

The managing director of Energy Australia, Michael Hutchinson, says more strike action could cost jobs.

"So if we're not getting the revenue that does cause us major issues," he said.

Yallourn supplies 22 per cent of the state's electricity and eight per cent of the national electricity market.

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