Traffic lights, businesses and homes were among about 700 properties in East Orange which lost power on Sunday morning.
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The power went out at 5.50am and was not restored until 11am.
Essential Energy operations manager Mat Rogers said the outage was caused by a "faulty piece of network equipment."
Mr Rogers said the outage initially knocked out power to some properties, including the traffic lights at the major Five Ways intersection on Bathurst Road.
He said more properties were disconnected mid-morning so crews could repair the equipment and investigate the cause.
"To safely restore [power] we needed to do some additional work," he said.
Mr Rogers said the electrical fault was in a piece of the network that connected overhead supply to an underground facility.
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