Almost 4000 Gippslanders without power

Almost 4000 East Gippsland residents in Victoria are without power due to damage caused by a large bushfire, which crews expect to contain later on Wednesday.

Power crews are on standby to inspect the damage but are unable to access the area due to safety reasons, SPAusnet spokesman Joe Adamo said.

The 7600-hectare blaze burning in the state's far east near Orbost has so far destroyed two houses and several sheds.

Fire crews working to control the blaze are building containment lines around the perimeter of the fire, aided by cooler conditions on Wednesday.

Adamo said about 3800 customers were without electricity in the Orbost, Mallacoota, Cann River and Marlo areas.

He said a 66kv line which feeds into the Newmerella substation had been damaged by the fire.

The one power line feeds power to the entire area, Adamo said.

Roads into the area are closed, blocking access, he said.

"At this stage our crews are not allowed in there due to the safety," Adamo told AAP.

When the area is deemed safe emergency services will escort power crews in to assess the damage, Adamo said.

"We have got crews on standby poised to repair," he said.

The bushfire was burning in the Tostaree-Princes Highway area, east of Nowa Nowa near Orbost, and travelling in an east-northeasterly direction.

About 200 firefighters and incident staff are involved in battling the blaze, which was sparked by clashing powerlines.

The fire has destroyed two homes, a machinery shed and a hay shed in the Wombat Creek area, east of Lakes Entrance.

Emergency warnings have been downgraded to watch and act alerts for the towns of Jarrahmond, Newmerella, Waygara, Bete Bolong North, Corringle, Simpsons Creek, Wombat Creek, Bete Bolong and Tostaree.

A CFA spokeswoman said work was continuing to complete a 50km containment line around the fire.

"It's expected to be contained later (Wednesday) with favourable weather conditions. We're expecting some rain," the spokeswoman said.

Residents still need to be vigilant, with winds expected to accompany the storms, the spokeswoman said.

The area has not been burnt by bushfire since 2001 and 2003.

The Princes Highway has been closed between Nowa Nowa and Newmerella and the Buchan-Orbost Road is closed between Buchan and Orbost.

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