That is caused chaos on roads across the Wakatipu, with traffic backed up across the Basin.
Aurora Energy's website shows the unplanned outage had affected Arrowtown, Lake Hayes, Dalefield, Gibbston, Crown Range and surrounding areas.
An Aurora spokeswoman said power was being restored to Arrowtown, but there are still customers affected between Lake Hayes Estate and the Arrowtown turn-off, however, exact numbers were still being determined.
About 247 customers between Lake Hayes Estate and Gibbston are still without power, but it is hoped that will be restored by 1pm, she said.
"The Remarkables ski field was out for a bit, but they're now back on and we're really grateful to NZSki which is managing the load at Coronet Peak to allow us to restore power to Arrowtown, which has been really, really helpful.
"We really just want to say thank you to the community for their patience while we do this work - we've got Delta crews in there working very hard and we're conscious of the need to get the power back on and we're working as fast as we can."
The spokeswoman said the cause was still unknown.
The cause of the outage may take some time to determine, she said.
A police media spokeswoman said emergency services were advised about 8.45am that power lines had "sparked and come down on the bridge''.
The NZ Transport Agency has advised that SH6 has reopened after it was closed when the lines came down.
A Queenstown Lakes District Council spokesman said traffic controllers on site have confirmed that State Highway 6 near the Shotover Bridge is now open to traffic in both directions.
"Please note that related congestion around Frankton and into Queenstown via Arthur's Point will take some time to clear. We advise all road users in the area to anticipate some delays while the traffic flows adjust, but basically good news."
