CFA Bendigo senior station officer Mark Nevill said the fire had started after an excavator clipped a powerline. 

He said the fire had burnt a small area of grass and CFA would continue to monitor the area until it had burnt out. 

Mr Nevill said this type of incident was rare and people needed to be careful when using machinery near powerlines. 

A Powercor spokesman said about 12 customers in the area were affected.

Power is expected to be restored about 1pm.

EARLIER:

FIRE crews are attending to a small fire in Jewell Court, East Bendigo.

The incident started this morning about 9.15am. 

The Bendigo Advertiser believes the fire was caused by a damaged powerline. 

A CFA spokeswoman said one truck was responding to the incident.