Essential Energy today announced an enterprise-wide reset to simplify the organisation, reduce costs and strengthen long-term service for regional, rural and remote customers in New South Wales, including a reduction of approximately 400 roles, predominantly from corporate and support functions, during 2026.

The changes are designed to simplify how Essential Energy works, reduce costs and strengthen delivery for customers and communities, while building the capabilities needed for a changing energy network.

Against a challenging economic backdrop, Essential Energy is targeting a reduction of about 15 per cent of its FY26 cost base through the reset and related efficiency work, while continuing to invest in the safety, reliability and resilience of the network.

This phase is focused on corporate and support roles. There will be no changes to the 96 depots from which field crews operate across the state.

Essential Energy’s apprentice program will continue, and all current apprentices are unaffected. After several years of deliberately higher intakes to build field capability, the next annual intake is expected to be around 40 apprentices, aligned to the forward work program and future workforce needs.

Chief Executive Officer John Cleland said the reset followed a review of the business and reflected the need to respond to a more complex operating environment while maintaining a clear focus on customers and communities.

“Our operating environment has changed significantly, but our responsibility remains the same: to deliver a safe and reliable network, provide value for money for customers, and invest in the network we will need for the future,” Mr Cleland said.

“Like every business, our costs are up - fuel, inflation, supply chains - and the energy transition isn't moving as fast as anyone expected. We supply 900,000 homes and businesses across 95 per cent of New South Wales, and we owe it to them to respond.

“The review identified changes we need to make to our structure, capabilities and cost base. This includes a reduction in corporate and support roles announced today.

“We recognise the impact this will have on our people. These are difficult decisions and we will support affected employees through consultation, transition support and voluntary pathways wherever possible,” Mr Cleland said.

Essential Energy will seek to achieve as much of the corporate role reduction as possible through reducing contract labour positions, voluntary redundancies where appropriate, natural attrition and not filling vacant roles. Where employee redundancies are required, they will be managed consistent with Essential Energy's enterprise agreement, including consultation and transition support for affected employees.

The reset is part of broader work to simplify the business, improve productivity and reduce external and overhead costs. Further work will continue across the business, but no target has been set for future phases.

For local communities, crews will continue to operate from local depots across regional New South Wales. Safety standards do not change. The way some work is scheduled and supported will change as the business simplifies its systems and processes with the objective of increasing operating efficiency.

Employees, unions and other key stakeholders were first advised in May that Essential Energy was undertaking a cost base reset. Today, employees were briefed directly on the proposed role reductions by the Chief Executive Officer before this announcement.

“We live and work in the communities we serve. Keeping Essential Energy financially sustainable is what allows us to keep investing in a safe, reliable network and to make the right decisions for the customers and communities we serve in regional New South Wales,” Mr Cleland said.