Powercor will pay $2.1 million after neglecting to inspect and trim vegetation underneath powerlines, leading to a major bushfire in February last year.
Last month, the company pled guilty to over 100 charges relating to failures in risk management, and a further charge for its role in a bushfire at Glenmore, south-east of Ballarat.
The blaze destroyed sheds, fences and farming equipment and threatened nearby homes.
In a statement, Energy Safe Victoria CEO, Leanne Hughson, said the company had neglected its duty to minimise the hazards and risks inherent in an electricity network.
She said by failing to manage vegetation around its powerlines, Powercor put one community in real danger and many others at risk.
The maximum fine for the offence was over $3 million.