The company planned to cut more than 180 jobs across NSW, which led to widespread fear and anxiety for local employees.

NSW Energy Minister Matt Kean announced today he will issue a directive to halt proposed job cuts.

Member for Myall Lakes Stephen Bromhead was thrilled with the result.

"For weeks I've been calling on Essential Energy to abandon proposed job cuts, and today the state-owned corporation has finally agreed to halt their plan to cut jobs in Myall Lakes," Mr Bromhead said.

"Regional NSW is continuing to suffer through the worst drought on record and job losses are the last thing Regional NSW need.

"Today Essential Energy workers across Myall Lakes can go home to their families knowing their jobs are safe and their future is secure - that is what I am proud of."

Member for Port Macquarie Leslie Williams said many former and current employees had spoken to her at length about the planned restructure of staff.

The time has now come for alternative options.

"I strongly urge the Essential Energy chief executive officer (CEO) and board to investigate alternative efficiency measures rather than drastically reduce the workforce numbers," Mrs Williams said.

"I understand that they need to identify savings in order to put downward pressure on electricity prices but slashing local jobs in communities like Port Macquarie is not an option particularly when the worst drought on record is having such an impact."

Essential Energy interim chair Robyn Clubb and CEO John Cleland held a meeting with the NSW Government on Monday, August 19 to discuss the company's role in being an affordable supplier of electricity in an evolving marketplace and the implications of future job reductions.

The company will provide information on alternative options for savings to the government when finalised.