Energy Minister Eric Ripper said the new State Networks Corporation would spearhead a massive upgrade of the State's South West power grid, which stretches from Kalbarri to Kalgoorlie and Albany.

Ripper added that more than $950 million would be spent on transmission and distribution improvements during the next four years.

"As part of the Government's reforms to introduce more competition in the energy market more private power stations will be built," Ripper said.

"This will free up Government resources that would otherwise fund public power stations for investment in network improvements."

"We have an electricity network that is nearly 40 years old and covers vast distances with reliability further affected by falling trees, fires and storms. As the regional economy diversifies, the system also has to cope with increasing power demands."