Footage captured on Fox Croft Mount in Headingley shows smoke billowing from the manhole before a huge blaze ensues.
Pictures provided to the Yorkshire Evening Post show fire crews on the scene tackling the blaze.
The street was cordoned off and power has been lost to the properties according to a resident.
The scene is now believed to be under control.
Northern Powergrid live map shows 100 homes which have lost power in LS6.
The statement from Northern Powergrid on their website said: "We've had to switch off the power for safety purposes whilst our engineers work on the cables and equipment that serves your area.
"We appreciate your patience and understanding."
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