The Electrical Trades Union (ETU) announced a fortnight ago Essential Energy staff would walk off the job between 10pm on Monday and 6am on Friday, with no skeleton crews to be made available in the event of any disruption to the electricity network.

On Monday night though, just prior to the start of the strike, the Fair Work Commission ordered a halt to the action, triggering a three-week bargaining period and arbitration of the dispute by the independent umpire if the two sides can't come to an agreement.

ETU secretary Steve Butler said the decision was the best outcome available to the union to finally end the long-running dispute over a new workplace agreement Essential Energy is trying to have ratified, but which the union argues will result in job losses, wage cuts and poorer conditions.

"Essential Energy management have been unwilling to budge despite more than a year of negotiations, making it almost impossible to reach an agreement," Mr Butler said.

"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.

"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."

Mr Butler said he wrote to ETU members on Monday night explaining the decision, and urging them to vote against a proposed agreement being put forward by management.

"Last night's decision by Fair Work has strengthened the negotiating position of workers and has created a roadmap for bringing this dispute to an end," he said.

"We are now calling on the NSW government and Essential Energy to rule out any appeal of last night's decision and allow this matter to be resolved by the independent umpire once and for all."