Families were evacuated after power and water supplies were cut to a block of flats when work by council contractors caused flooding.
People living on the Orchard Estate in Broadmead Road, Woodford Green, were forced to keep warm in a nearby community hall when an unknown component failed yesterday morning.
The work is part of a £10million energy-saving project on the estate, which is aimed at reducing household bills.
Staff prevented the Guardian from entering the community hall to talk to residents about the issue.
Cllr Gwyneth Deakins of Roding ward, said: "They had to switch off the electricity supply to the whole block to stop it endangering anyone.
"The contractors between them have done the right thing by evacuating everyone."
"It was a bit worrying it could happen, but everyone reacted quite quickly."
It is believed supplies were not restored until late in the evening.
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