Narooma Rural Fire Service crews rushed to a grass fire at Riverview Road, North Narooma on Wednesday, January 13.
It was understood a tree had fallen on powerlines.
At about 2.30pm, crews worked to control the blaze.
Narooma RFS captain Sophie Taylor said the fire started on a property and spread into nearby bush.
"It's all under control now," Ms Taylor said.
"The powerlines are still down and the road is blocked off with traffic control for safety."
Ms Taylor said residents of Fishermans Crescent would not be affected by the road closure.
"It's a fair way up Riverview Road," she said.
Narooma Fire and Rescue crews also attended.
Essential Energy is currently responding to the power outage affecting approximately 1,180 customers in North Narooma.
Operations Manager, Darren Basterfield said customers in the area lost power at 2.28pm.
"The area lost power when Essential Energy's network protection equipment operated after detecting a fault on the high voltage powerline," he said.
"The Rural Fire Service are currently attending the scene and have recently determined it safe for Essential Energy to begin making repairs and restore supply to customers."
Mr Basterfield said the Rural Fire Service will review the circumstances regarding the fire.
He reminded the public to stay at least eight metres away from damaged or fallen powerlines.
"Always treat powerlines as live and remember that anything in contact with them, such as cars, trees or fences, can conduct electricity and pose a danger," Mr Basterfield said.
"Residents should contact Essential Energy on 13 20 80 to report fallen powerlines, network damage, fires or trees that come into contact with powerlines or call 000 if the situation is life threatening."