Six fire crews are trying to put out a fire at a sub-station in Russell Street, Albion Park.
The fire started around 4.50pm and is well alight at the sub-station, with Fire and Rescue NSW, police and ambulance on scene.
Acting Superintendent Rob Jansen said it was believed an electrical problem caused the fire in the battery room of the sub-station to start.
"That fire appears to have flared up and we now have a fire in the roof of the sub-station, They have a crew at work," he said.
"The electrical authority [Endeavour Energy} is in attendance and have isolated some low voltage power.
"There is still some high voltage power active.
"At the moment there are no injuries but we have had some calls from residents concerned about the smoke.
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"If it becomes an issue crews will organise with police to carry out any evacuations as required."
Endeavor Energy sent messages to residents in the Albion Park area to state that they would experience power outage.
Power is out to about 7000 customers while the fire brigades safely put the fire out.
"We are commencing switching to restore power to as many customers as possible from other parts of the network," an Endeavour Energy spokesman said.
"Affected customers will receive SMS advice about the interruption to their power supply.
"Please take care on the roads as traffic lights in the area may be out."
Customers can check restoration times online by:
- entering your suburb into the power outage application at www.endeavourenergy.com.au
- downloading the free Endeavour Energy outage app from the App Store or Google Play store..