Previously Barnett had vehemently opposed the separation of Western Power's transmission operations from its generation and retail components.
"I guess you could call it a concession or a compromise but what I'm saying is that I'm willing to entertain an argument that ringfencing hasn't been strong enough," Barnett said.
Barnett started the energy deregulation process when Energy Minister in Richard Court's Government, but has alleged there are fundamental flaws in Labor's electricity reform proposal.
He said the plan could raise the issue of security of supply, would not guarantee lower electricity prices and had the possibility of wiping $1 billion from the value of Western Power.
