Power supplier Essential Energy denies poor maintenance of its equipment contributed to the bushfire that devastated the NSW coastal town of Tathra.
But a leading law firm says it will consider launching a class-action lawsuit if it emerges the power supplier neglected its duties.
Essential Energy believes trees fell onto powerlines during extreme weather conditions, sparking the blaze that destroyed about 100 properties on Sunday.
A preliminary investigation by the Rural Fire Service found electrical infrastructure was the likely cause of the fire.
The Electrical Trades Union subsequently said the NSW government and Australian Energy Regulator had serious questions to answer over "massive maintenance funding cuts".
But Essential Energy chief executive John Cleland on Friday said an initial review showed inspections and maintenance of the area around Reedy Swamp Road, just east of Bega, were "up to date and in accordance with prescribed standards".
"Preliminary internal enquiries indicate network protection equipment activated as it is designed," he said in a statement.
Law firm Slater and Gordon is now investigating whether the blaze could have been prevented.
"We will be looking at whether Essential Energy adhered to stringent inspection and ongoing maintenance requirements and ultimately what could have been done to prevent this bushfire," lawyer Rory Walsh said in a statement.
A coronial Inquest to determine the cause of the fire and an independent inquiry into the emergency response will be closely eyed by the firm.
The lawyers will also hold community meetings with affected residents and property owners.
"This type of litigation tends to be fiercely contested by electrical infrastructure providers but we have extensive experience and are well equipped to take on this legal battle for Tathra," Mr Walsh said.
Essential Energy's "preliminary understanding" is that trees fell onto powerlines during extreme weather conditions but no conclusive finding has been made.
Power was restored to all customers in Tathra on Thursday night some four days after the fire tore through the south coast town.
Recovery coordinator Euan Ferguson has warned it could take 12 to 18 months before some displaced residents can return home.
A recovery centre has opened at the Bega Civic Centre to help victims with a range of services including disaster welfare, insurance, providing access to counsellors, shire planning and legal aid.
In total 65 homes were destroyed along with 35 cabins and caravans.
