"The fires last year identified that existing measures in place to minimise the risks of bushfires started by electricity infrastructure, quite frankly, are not sufficient," Energy Minister Anthony Roberts said.

A $200 million class action against Endeavour Energy involving 400 Blue Mountains residents is before the Supreme Court, amid allegations the company failed to ensure a dangerous tree on Linksview Road in Springwood was removed.

Endeavour had served a notice to tenants at the property earlier in the year to prune the tree, which other residents allege sparked the bushfire.

The company denies it is responsible, claiming the law does not impose an obligation on electricity companies to clear trees interfering with power wires on private land.

Proposed changes to the law introduced to the NSW Parliament will give a clear time limit of 60 days for a hazard to be removed from privately owned power lines.

Energy companies will issue a notice to tenants or property owners detailing the exact work to be carried out. Property owners will have 30 days to respond, and can choose to organise for the work to be done by a contractor, or have the electricity supply disconnected.

If the property owner fails to respond, the electricity company can enter the property and undertake work to make the electricity assets safe.

The government believed electricity companies should not bear the cost of bushfire hazard reduction work on private electricity assets, because the expense would be passed on to consumers across the state, Mr Roberts said.

"Importantly, the amendments require network operators to have in place a financial hardship policy for people who have difficulty paying the cost of the work," he said.

"This means the safety of the landholder, the community and property is not compromised by financial considerations."

The notice will include the contact details for the Electricity and Water Ombudsman, to handle complaints. The property owners, not the tenants, will be liable for the charges.

Only bushfire prone areas will be covered by the new law, which will also exempt home owners who have been issued with a notice from complying with land clearing and environmental planning laws to do the work.

This would allow the 60-day time limit to be met, Mr Roberts said.

"When removing threats of bushfire, time is of the essence," he said.

The ombudsman, Local Government NSW, and NSW Farmers had been consulted on the bill.

The class action against Endeavour Energy will return to the Supreme Court for a directions hearing on October 31.

The court case alleges the company had a duty of care to make sure the network was safe, and failed to remove or trim the tree on Linksview Road at its own expense, which was allowed in an emergency under the present law.

The case alleges the fire was caused by a large gum tree falling onto a service cable on October 17 last year.