A CRUCIAL report on reducing the risk of bushfires caused by powerlines has been blocked by the Victorian Government.

The Powerline Bushfire Safety Taskforce's interim report was due to be released on Monday.

But sources told The Weekly Times that Energy and Resources Minister Michael O'Brien cancelled the report's release after being briefed on its contents by taskforce chairman Tim Orton and energy safety director Paul Fearon.

Powerlines have been blamed for starting five of Black Saturday's biggest fires, including the Kilmore East fire that killed 119 people.

The taskforce was established by the former Labor Government to meet the 2009 Victorian Bushfires Royal Commission's recommendation to minimise the risk of powerline fires.

In an email to stakeholders, the taskforce said that after briefing the minister it had "not been told how the new Victorian Government wishes to consult the community on bushfire reduction options".

"Accordingly we are not holding any stakeholder reference panel meetings until the situation is clarified and the meeting scheduled for Monday will not be held," it said.

Opposition bushfire response spokeswoman Jacinta Allan said the refusal to release the interim report was a "clear sign the Baillieu Government was walking away from its commitment to implement every one of the Royal Commission's 67 recommendations".

Mr O'Brien said the taskforce's previous terms of reference were too narrow, and the Government had decided to extended them and delay its final report until September.

In opposition, the Coalition promised to implement all 67 recommendations, including replacing all single-wire earth return powerlines with "aerial bundled cable, underground cabling or other technology that delivers greatly reduced bushfire risk".

The commission called on the Government to replace all SWER lines in high-risk areas within 10 years, with all others, including 22,000 volt lines, replaced as they reached the end of their engineering lives.