The electricity company had planned to slash 182 jobs, two of those in Armidale and another two from Walcha and Tenterfield, revealed by internal documents obtained by the Electrical Trades Union [ETU].

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."

Meanwhile, Northern Tablelands MP Adam Marshall said he was thrilled the government had directed the state-owned corporation to reverse its decision.

"Essential Energy and its arrogant CEO John Cleland has now been brought to heel, like the errant child he has shown himself to be in the last few weeks," Mr Marshall said. "Following the March election, the NSW Government, via the Premier, announced there would be no public sector country NSW job losses and as a government body, the community and I expected Essential Energy to follow suit.

"Rural and regional NSW is the backbone of this state and as we continue to suffer through the worst drought on record, job losses were the very last thing our communities needed.

"I thank Deputy Premier John Barilaro for his unwavering support of me and his fellow rural parliamentary colleagues in stopping this move by Essential Energy. He deserves enormous credit for this result.

"I also congratulate Energy Minister Matt Kean for directing the company to do the right thing," he said.

At least 182 positions were expected to go across 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 company will provide alternate options for savings and work with the state government to implement its decisions and put downward pressure on network charges as required by the Australian Energy Regulator.