The Australian Energy Regulator (AER) said its decision should deliver savings to annual household electricity bills in 2015-16 of $313 for Essential Energy customers.

"We are confident we have provided these businesses with a sufficient amount of revenue to efficiently run these businesses safely and reliably,"

Australian Energy Regulator chair Paula Conboy said.

But Networks NSW chief executive Vince Graham forecast at least 2500 jobs would be cut, and he warned of slower natural disaster response times and pressure on bushfire prevention in regional areas.

Both the NSW government and opposition have acknowledged significant job losses could result.

The AER stood by its decision despite the comments from Mr Graham, with Ms Conboy saying the AER had taken all of the issues into consideration and it was up to the businesses how they spent their money.

She said they could also apply for additional funding for one-off natural disasters.

"Consumers have a right to a safe and reliable service," she said.

"Consumers also should not pay more than is necessary for those services."

Typical small business customers of Essential Energy would have an average annual saving of $528 on their bills in 2015-16, NSW energy minister Anthony Roberts reported. Dubbo mayor Mathew Dickerson said Dubbo City Council was still to analyse the AER's decision.

"Obviously any announcement that relates to cheaper prices is good for the residents of Dubbo but it would be a shame to see an approach of instant reduction in staff numbers as a result of the AER announcement," he said.

"I would hope that the network providers look at a range of cost savings and not just jump to reducing jobs.

"The other component which I am sure the AER has considered is the high quality of the network that is demanded by residents and consumers and I would be disappointed if the network quality was reduced.

"We well remember the major impact the five-week-long 1998 blackout in Auckland had on so many individuals and businesses."

Mr Roberts said the government was disappointed the AER did not provide a transition period for Networks NSW to "implement the necessary reforms safely and responsibly".

"We will work with Networks NSW to review the detail of the determination and on how the necessary reforms can be delivered without compromising the safety and reliability of the state's electricity networks," he said.

Opposition leader Luke Foley welcomed the AER decision.

While he was "concerned" about the job losses, he said as Labor leader he was "on the side of affordable power for households and businesses in NSW".