The FOOTT truck had been collecting rubbish as part of the Greater Shepparton City Council residential kerbside collection when the load caught fire in Graham St about 7am.
The driver followed protocol and tipped the load on to the street, with Fire Rescue Victoria called in to extinguish the fire.
Firefighters arrived on scene within seven minutes to find the dumped rubbish alight.
A Fire Rescue Victoria spokesperson said the fire was deemed under control six minutes after the brigade’s arrival.
Power lines were also brought down during the incident, with power going out in about 884 homes.
At 4.30pm on Friday, a Powercor spokesperson said power had been restored to the majority of homes, but 61 were still without power.
Their power was expected to be back on by 7pm Friday.
Traffic was blocked in both directions on Graham St while the scene was cleared.
FOOTT chief executive Andrew Yeoland said no-one was injured in the incident, and the company thanked emergency services for their response.
“Truck fires are a serious issue facing the waste industry in Australia,” he said.
“Hazardous items such as batteries and vapes, when placed in bins, can ignite and create dangerous situations for drivers and the community.
“These items should always be disposed of at designated drop-off sites.”