Victims of the Terang/Cobden bushfire of St Patrick's Day fires in 2018 have begun receiving compensation from a $17.5 million settlement with electricity giant Powercor.
About 200 victims joined a class action following the fire which started near the Terang electricity substation on the night of March 17, two years ago.
The fire, sparked by a shifting anchor pole caused power conductors to clash, tore through more than 4000 hectares and significantly damaged homes and farms.
The Supreme Court recently approved the settlement reached late last year after a class action Supreme Court trial started in Warrnambool court.
It's understood the payments are part of a first interim distribution and that costs for Warrnambool's Maddens Lawyers are yet to be finalised.
Maddens Lawyers principal Kathryn Emeny said the victims were expected to receive more than 80 per cent of their compensable bushfire losses.
"These payments have come at a particularly important time for fire victims who are still recovering from the devastating impact of these fires, and along with the rest of the local community, are now facing increased challenges associated with COVID-19," she said in a statement on Friday.
Lead plaintiff in the class action Anthony Lenehan said it has been "very tough" since he lost all of his home contents in the fire.
"I have had a chat with some group members and the compensation means so much to us," he said.
"We didn't want the world, we are very humble people. What this outcome does is provide us with some closure."
Maddens Lawyers have also reached a $5 million settlement with Powercor for residents in nearby Garvoc, who were also impacted by a separate St Patrick's Day bushfire, started after a rotten wooden power pole fell in high winds that night.
- With AAP
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