Question: A maximum demand report on one unit shows the electrical submains need upgrading. Who pays for the upgrade?
I’m the chair of our small complex of 10 units, which are almost 40 years old. A maximum demand report on one unit shows its electrical submains need upgrading. The upgrade is needed because the unit owner (or past owners) increased the electrical load.
The submains to each unit run either in the ceiling or underground, then enter a wall and run to the sub board or switchboard controlling that unit. As I understand it, they’re a strata expense, not much different from plumbing pipes.
There’s also potentially a safety issue for the whole complex, since every unit’s sub board could be affected. To put it in risk terms:
- The hazard is the maximum demand overload.
- The risk is the submain overheating (although highly unlikely).
- The control measures are to reduce the load (very complicated) or to increase the submain size in all units.
Given the extra load came from one unit, does the owners corporation or the individual unit owners pay for the upgrade?
Answer: If the submains are common property, the owners corporation is generally responsible for upgrading them, unless a by-law makes the owners whose works increased the demand responsible.
To the extent the electrical submains run through the ceiling, the floor slab or the external walls of the lots, this would appear to be common property infrastructure that the owners corporation is responsible for repairing and maintaining under section 106 of the Strata Schemes Management Act 2015 (SSMA 2015). I say “appear to be” because the rules may differ if your scheme was registered before 1 July 1974; you would also need to see a copy of the strata plan to form a conclusive view on the repair and maintenance obligations. Assuming the submains formed part of the common property infrastructure, the costs of upgrading them would also appear to rest with the owners corporation. However, the position may differ if the submain upgrade was necessitated by increased demand from an identifiable lot or lots.
If the increased demand has been caused by works carried out by lot owners that touch and concern the common property comprising their lot, then these works would likely have required approval by way of a special resolution and the making of a by-law in accordance with section 108 of the SSMA 2015. Typically, lot owners agree to be responsible for any costs associated with their works (including any required submain upgrade) as a condition of the owners corporation granting the by-law. If the motion and by-law are silent on who is responsible for the works and/or the associated costs, the default position is that it might still be the owners corporation. Nonetheless, it is worth reviewing the scheme’s by-laws to see whether any relevant by-laws apply to renovation works carried out by lot owners, including past lot owners, whose terms would still apply to the current owner.
If the increased demand has been caused by unauthorised common property works that were not approved by way of a special resolution and the making of a by-law, the owners corporation can write to the lot owner(s) requesting that the lot owner(s) agree to the making of a by-law that makes them responsible for their works and the associated costs for paying for, or at least contributing a higher share of, the costs to upgrade the submains. Should the owner(s) fail to provide a satisfactory response, the owners corporation could consider filing an application in NCAT seeking to have the unauthorised works removed and the common property reinstated to its original condition. In this respect, section 151 of the SSMA 2015 may also be relevant, as it prevents owners from doing anything to their lot that interferes with the passage of amenities through the lot, including electricity passing through cables.
Finally, the owners corporation may pass a by-law making all owners responsible for the submains servicing their specific lot. However, this would require all owners’ consent and further legal advice.
This post appears in the November 2026 edition of The NSW Strata Magazine.
Joshua Bernie
Swaab
E: jbb@swaab.com.au
P: 02 9233 5544
Leave a Reply