THE State Government's decision to approve an expansion of the Brunswick Terminal Station has been branded a "slap in the face" of residents.

Last week State Planning Minister Matthew Guy approved the $271 million terminal upgrade, rezoning the land from residential to special use. The move overturned a Moreland City Council decision to reject the proposal, put forward by power companies SP AusNet, CitiPower, and the Australian Energy Market Operator.

Merri Creek Residents Group spokesman Ramon Collodetti said the decision was "just outrageous" and that numerous safety concerns had been left unaddressed. "We are calling on the ministers and government to appoint an independent review panel to reassess the placement of the new terminal station."

Brunswick MLA Jane Garrett said last year she and the community had repeatedly lobbied the State Government to get involved in the terminal station application process.

She said Minister Guy's decision to call in the application was a "slap in the face of the community".

"They told us it was a local council decision and council rejected it as inappropriate. The State Government should have been involved from the beginning," Ms Garrett said.

"This shows extreme contempt for the community."

Energy and Resources Minister Michael O'Brien backed Mr Guy's decision. He said alternative sites for the terminal station had been explored in locations such as Kingsville and Coburg, but that greater construction and running costs in these areas would have meant higher power bills for consumers.

SPAusnet spokesman Jonathon Geddes said the power companies had consulted with the community and Moreland council to develop the final design for the terminal station.

Work on the upgrade is expected to begin this year and be complete by 2014.