At least three jobs were slated to go in Yass, Crookwell and Goulburn, revealed by internal documents obtained through the Electrical Trades Union.

The Upper Lachlan Shire Council's (ULSC) mayor John Stafford said this is great news for local employees. This will benefit our local economy and our community, he said.

In a July letter to the supplier, the ULSC acting general manager Andrew Croke had shown concern the provider would not be able to maintain its current service level and response times.

The job cuts in Crookwell would have had a large impact on the local economy, the letter continued.

After weeks of demands to Essential Energy to abandon the proposed job cuts, the state-owned corporation won't move forward with the plan, Mr Barilaro said.

"We worked with stakeholders, we listened to communities, we stayed firm on our position and we've now achieved a major victory for regional NSW," he said.

"From the start, I urged Essential Energy to find further efficiencies without job cuts and that approach has proved successful.

"Regional NSW is the backbone of this state, and as we continue to suffer through the worst drought on record the last thing our communities need are job losses."

At least 182 jobs were slated to be cut in regional NSW.

Essential Energy interim chair Robyn Clubb and chief executive John Cleland held a meeting with state government ministers on Monday.

Essential Energy was ordered to stop the workforce reshaping process and consider alternate options for savings after the meeting.

The job cuts were response to downward pressure on electricity pricing by the Australian Energy Regulator and a 40 per cent reduction in network charges. The supplier will continue to deliver their services at the lower cost.

The company will provide alternate options for savings and work with the state government to implement its decisions.