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Thousands Of Homes in Victoria Without Power As Dangerous Storms Descend On State

Thousands of Victorians are without power and a home has been struck by lightning, as dangerous thunderstorms lash parts of the state.

The Bureau of Meteorology issued a red warning for "very dangerous" thunderstorms, heavy rain and flash flooding across much of Melbourne and the southern Macedon Ranges just before 7am on Thursday.

By 9:30am most of the storm had passed over central Melbourne, leaving flooded roads, traffic lights down, slippery train platforms and power outages.

The thunderstorms are moving southeast and will hit Flinders, Hastings, and Mornington by 10am, and Phillip Island, French Island and south of Cranbourne half an hour later.

A Bundoora home was struck by lightening and set on fire just after 8am.

Firefighters arrived to find the house was fully alight and threatened to spread to a neighbour's home.

Three people were evacuated from the property, on Betula Avenue, and were treated by paramedics before being taken to hospital.

The fire was contained with about 40 per cent of the home damaged in the blaze.

Meanwhile, more than 7000 people were without power as of 9:45am.

Powercor spokesman Jordan Oliver said lightening striking power poles had impacted its electricity network.

"This storm has been largely lightening that has been the problem," he told ABC Radio Melbourne.

"There's also damage across the network to things such as transformers, which also takes power out for people."

Earlier on Thursday a watch and act alert was issued by the state's emergency services for people in Greater Melbourne to prepare to take shelter.

However, this has since been cancelled with residents asked to watch out for floodwaters, damaged buildings and fallen trees.

The Department of Transport is warning drivers and public transport passengers to "be vigilant" as weather conditions could change quickly.

Signal faults caused by the storm are delaying some trains and the M80 Ring Road has been flooded, with a left lane closed.

Drivers are asked to leave extra space between them and the car in front, to use headlights, and pull over if the rain becomes too heavy.

Malmsbury Headwall recorded 56.2mm of rain in the 60 minutes to 5:15am, while Trentham Reservoir recorded 38.6mm in one hour to 6am.

The thunderstorms, which could continue throughout the day on Thursday and into Friday, have been brought on by a "very humid, unstable air mass", the bureau said.