Northern Powergrid believe that power will be restored to hundreds of homes in the Jarrow and Hebburn areas by mid-afternoon.
They have managed to restore power to around two hundred homes in the last hour, but expect the remaining seven hundred to be affected until around three o'clock.
Northern Powergrid have confirmed that 942 homes in the Jarrow and Hebburn areas are currently without power.
They became aware of problems with the power supply around five o'clock this morning when an initial 2800 homes were thought to be without power.
Engineers have managed to partially restore power to the area, but there are still thought to be over nine hundred homes affected.
Northern Powergrid are still investigating what the source of the problem is and hopefully expect the power to be restored by 12 o'clock.
They have apologised for any inconvenience that the power cut has caused.