Vic floods ease but towns still at risk

Almost 200 properties in Victoria's Gippsland Lakes district remain at risk of isolation, with floodwaters set to rise again on Thursday night.

The major threat from flooding in Victoria's east has eased but hundreds of properties and one of the state's main power stations remain affected.

About 90 properties are at risk of flooding or isolation in Paynesville, where the army is focusing its sandbagging efforts.

Also at risk are 36 properties at Metung, 30 at Raymond Island and 17 at Eagle Point, the State Emergency Service (SES) said on Thursday.

Residents have been warned to prepare for possible evacuation of those towns, as well as Loch Sport.

Lakes Entrance, where dozens of properties were not harmed during Wednesday night's one-metre-high peak, remains on alert with another high tide expected about midnight Thursday.

Emergency Services Minister Peter Ryan said flooding hadn't reached the devastating levels that were feared.

"The situation has eased. The rain has gone for the time being. It won't be back until mid-next week," he said on Thursday.

The collapse of a section of the Morwell River diversion sent floodwaters through a mine adjoining the Yallourn power station, forcing it to run at about a quarter of capacity.

But both the Victorian government and Australian Energy Market Operator (AEMO) say flood damage to conveyors at the site, which generates a fifth of the state's electricity, won't cripple Victoria's power supply.

Premier Ted Baillieu said the bulk of the water had gone into an unused mine and there should not be an impact on electricity prices for consumers.

"There is spare capacity, and we are confident there is no threat to power supplies," he said.

AEMO CEO Matt Zema said the extra capacity in the system would be sufficient to meet the state's power needs, even if Yallourn was to go offline.

"We have, on average, more than 2500 megawatts of generation in reserve every day for at least the next seven days," he said in a statement.

As many as 175 properties in the Gippsland Lakes area were isolated by the flooding, brought on by a storm that dumped a month's worth of rain over the area in one day.

Floodwaters could continue to peak in the Gippsland Lakes area during high tides over Friday and Saturday, according to SES spokeswoman Kayla Maskell.

She said Hollands Landing, which was cut off on Wednesday, could remain inaccessible for several days.

About 1600 properties throughout the region were without power on Thursday afternoon, mostly in Mallacoota, due to storm damage.

The region's eight major rivers have been flooded, and the mass of water heading down swollen rivers and waterways is threatening lake district towns by combining with tides.