Annastacia Palaszczuk campaigned heavily on the plan, describing it as critical to paying down Queensland's $80 billion debt.

But Australian Competition and Consumer Comission chair Ron Sims told News Corp it was "extremely troubling" because fewer competitors could increase costs.

But Ms Palaszczuk told Fairfax Radio 4BC on Friday the government would not do anything that would drive up bills.

"We have a plan in terms of putting in place two subsidiaries which would allow competition to happen," she said.

"Now those plans need to be discussed with the ACCC, and those conversations will happen."

Treasurer Curtis Pitt said he had a constructive discussion with Mr Sims on Thursday night, and hoped to bring the ACCC on side.

He said the policy to merge CS Energy and Stanwell, and combine Energex, Ergon and Powerlink, was about making back office management, maintenance and operational savings.

"Based on the modellings we've done, we'll find about $150 million each year savings on consolidation process, bringing the five businesses down to two," he said.

"With that, we've said we'll be putting all of those savings into debt repayment."

Deputy LNP leader and shadow treasurer John-Paul Langbroek said the government needs to go back to the drawing board.

"Labor's policy during the election campaign has now been exposed as not having had the work done," he told Farifax Radio 4BC.

"Queenslanders need to have their debt paid down, but they don't need higher electricity prices."