Job cuts at three NSW electricity distributors have helped the providers exceed savings targets, which the state government says will benefit consumers.
The NSW government rationalised the operations of electricity networks Ausgrid, Essential and Endeavour last year, in a bid to deliver more than $400 million in savings over four years.
A shared group management model called Networks NSW was put in place, but the three distributors continued to operate as separate entities.
The NSW auditor-general on Monday reported that over the last two financial years, the three distributors achieved total savings of $1.4 billion, far exceeding the $400 million four-year target.
The savings were found through cuts to employee numbers, overtime and other non-labor costs.
"The fall in employees was achieved through natural attrition, recruitment freezes and voluntary redundancies," the report says.
The report gave a "good" audit result to six state-owned electricity corporations, whose after-tax profits rose to $1.7 billion, up from $1.2 billion in 2011/12.
Again, this was mainly due to the combined after-tax profit of the three distributors increasing from $771 million to $1.363 million from the previous year.
Energy Minister Chris Hartcher said the cost-cutting would ultimately save households and businesses.
"We set out on a network reform agenda to put an end to Labor's legacy of double-digit price hikes and this has been delivered," he said in a statement.
The Independent Pricing and Regulatory Tribunal (IPART) in June set an average electricity price rise of only 1.7 per cent, prompting Mr Hartcher to claim the state had "turned a corner" on rocketing power bills.
The audit of a seventh state-owned company, Eraring Energy, was yet to be finalised.