The industrial action due to begin at 10pm on Monday night was halted at the 11th hour when the commission ordered the two parties into a 21-day bargaining period.

The ETU said the decision was the best outcome available to finally bring about an end to the long-running dispute.

Essential Energy also welcomed the decision to halt the planned strike, after it "successfully argued the proposed work stoppages would threaten public safety and network reliability".

The NSW government-owned electricity network operator and the union have been in dispute about a replacement enterprise agreement since April 2015.

The clash recently escalated, with workers at Orange and at depots across the state striking.

ETU secretary Steve Butler said the commission's decision was the best outcome available to the union to finally bring an end to the long-running dispute over Essential Energy's attempts to immediately cut 800 regional jobs, as well as reduce wages and conditions for the remaining workers.

He said Essential Energy management had been unwilling to budge, making it almost impossible to reach an agreement.

"This ruling is the best possible outcome for workers because it not only forces the company to sit down and negotiate in good faith, but it also means that if no agreement is reached in the next three weeks the Fair Work Commission will take the decision process out of management's hands," he said.

"Arbitration means the union will be able to put its case to the independent umpire who will then make a final decision that Essential Energy management are legally bound by."

Essential Energy would always put the safety of its employees, contractors and the public above anything else so it welcomed the decision on the strike, acting chief executive officer Gary Humphreys said.

"Today's decision will reassure regional and rural communities across NSW that the electricity distribution network can continue to operate safely and reliably," Mr Humphreys said.

Essential Energy said it had been in negotiations with unions for a replacement enterprise agreement that met the needs of employees, safeguards safety performance, was modern and flexible, contained costs to customers, and supported the business's objectives of running a safe, reliable, affordable network.

"The Fair Work Commission decision has just been announced," Mr Humphreys said. "Essential Energy will now consider the implications and most appropriate next steps in these long-running negotiations."