Energy Safety director Albert Koenig argued that in extreme weather, switching off the power network might be the only way to prevent a repeat of the fatal Tenterden bushfire of December 2003, which was caused by faulty power infrastructure.
But state government-owned Western Power said the suggestion was impractical, and turning off the power would pose greater threat to lives and property than the electricity utility's ageing infrastructure.
Koenig argued that despite upgrades to the Western Power network since the fire and subsequent coronial inquest, large areas were still in a state of neglect and powerlines and other related equipment still posed fire risks.
Western Power responded by saying that power supplies were needed to fight fires and maintain communications, and cutting electricity would also hurt the frail and elderly and compromise farmers' abilities to tend to livestock.
The utility faced a maximum of $20,000 in fines after pleading guilty to one charge. But Perth's Magistrate Court handed down a lesser fine on Monday.
A Coronial inquest earlier this year found Western Power's actions had caused the bushfire that killed two women, Judith Ward, 59, and Lorraine Melia, 46, in the state's south-west on December 27, 2003.
Molten metal from clashing transmission lines started a fire during strong, hot winds and high temperatures.
The state coroner said if Western Power had followed the Office of Energy Safety's request to attend to overdue maintenance items after a similar fire in Mt Barker three years ago, the Tenterden fire would not have occurred.
Coroner Alistair Hope made eight recommendations in his report and Western Power said it had acted on all of them.
It also said it would continue to monitor the safety of its network to prevent such a tragedy happening again.
Western Power still faces numerous compensation claims from people who lost property in the fire.