Two former IT managers at Western Australia's regional energy utility are being investigated by the state's Corruption and Crime Commission over allegations of serious misconduct.

The CCC says the Horizon Power employees failed to declare they jointly-owned an IT consulting company that the state-owned entity paid $1.16 million for services between August 2013 and September 2017.

It is also alleged the pair funnelled hundreds of thousands of dollars in agency fees for contractor recruitment services into their business.

AAP