Introduction

Managing electrical capacity is an increasingly significant concern for New South Wales (NSW) strata buildings. Many existing electrical systems, often decades old, were not designed for the substantial energy demands of modern living, including the growing need for electric vehicle (EV) charging. This mismatch between aging electrical infrastructure and rising consumption presents challenges that impact safety, functionality, and compliance within the stratum.

This guide provides important information for NSW strata owners, Owners Corporations (OCs), and strata committees navigating these complexities. It offers practical insights into understanding, assessing, and proactively managing a building’s electrical capacity, particularly concerning the integration of EV charging infrastructure and achieving EV readiness, helping to safeguard property value and resident amenity.

Why is Electrical Capacity a Critical Issue for NSW Strata Buildings?

Aging Electrical Infrastructure Impact

Many strata buildings in NSW, particularly those constructed decades ago, grapple with aging electrical infrastructure. These systems were often designed based on the energy needs and safety standards prevalent at the time of construction, which are significantly lower than today’s requirements.

Over time, several issues have emerged with these aging systems:

• Components like wiring insulation can degrade, becoming brittle or damaged, increasing the risk of faults
• Outdated switchboards may lack the capacity for additional circuits needed for modern living
• Essential safety features like Residual Current Devices (RCDs) on all circuits are often missing
• Original wiring might be of an insufficient gauge (thickness) to safely handle the cumulative electrical load

Rising Energy Demands Driven by Modern Appliances and Technology

Compounding the issue of aging infrastructure is the substantial increase in electricity consumption within modern households. Today’s lifestyle involves a higher number and variety of power-hungry devices compared to when many strata buildings were constructed.

The widespread use of appliances contributes significantly to the overall electrical load. Consider the cumulative impact of:

• Air conditioning systems, which are now common in many apartments
• Multiple large-screen televisions, computers, and personal electronic devices per household
• High-wattage kitchen appliances like ovens, cook tops, and range hoods
• The integration of smart home technology, including security systems, cameras, and automated devices

The Electric Vehicle Charging Factor

The growing adoption of EVs introduces a particularly significant and often acute strain on strata electrical systems. Installing EV chargers is becoming increasingly common, but each charger adds a substantial electrical load to the building’s infrastructure.

A single EV charger can draw power equivalent to several major household appliances operating simultaneously. When multiple residents seek to charge their vehicles, especially during peak evening hours, the combined demand can quickly overwhelm a building’s existing electrical capacity.

This is especially true for older buildings with limited spare capacity. Consequently, the need to accommodate EV charging is a major driver forcing strata committees and OCs to confront and address underlying electrical capacity limitations, often acting as the tipping point where existing systems are no longer adequate.

What are the Signs of Electrical Capacity Strain?

Common Warning Signs in Your Building

Identifying the symptoms of electrical strain early is crucial for preventing larger problems in your strata building. Be alert for these common indicators that suggest your building’s electrical system may be struggling to cope with demand:

• Frequent Tripped Circuit Breakers: This is a primary sign that circuits are overloaded because too much power is being drawn, or there may be a fault. While occasional trips can happen, regular occurrences, especially on the main switchboard, signal a potential capacity issue.
• Flickering or Dimming Lights: Lights that flicker or dim noticeably, particularly when large appliances like air conditioners, lifts, or ovens turn on, can indicate voltage drops caused by high-demand straining inadequate wiring or the overall system.
• Buzzing Sounds or Burning Smells: Unusual noises like buzzing or crackling, or any distinct burning odours coming from power outlets, light switches, or the switchboard, are serious red flags. These often point to loose connections, arcing, or overheating components and require immediate attention from a licensed electrician.
• Warm Outlets or Switch Plates: Electrical outlets or switches that feel warm or hot to the touch suggest potential overloading, high resistance due to faulty connections, or undersized wiring. This is a hazard that needs urgent professional inspection.
• Inability to Install New Appliances or EV Chargers: If residents encounter difficulties or electricians advise against installing new high-power items, such as modern air conditioning units, kitchen appliances, or an EV charger, citing insufficient electrical capacity, it clearly indicates the system has reached its limit.
• Visible Wear or Damage: Any visible signs of deterioration, overheating (scorch marks), or damage to switchboards, circuit breakers, or visible cabling should be professionally investigated.

Consequences of Ignoring Capacity Problems

Failing to address electrical capacity limitations in a strata building can lead to a range of serious and costly consequences. These extend beyond mere inconvenience and can significantly impact safety, finances, and resident satisfaction:

• Safety Hazards: Overloaded circuits and aging, degraded wiring are significant fire risks. Insufficient capacity increases the danger of electrical faults, overheating, short circuits, and potentially electric shock, compromising the safety of residents and the building.
• Damage to Appliances: Fluctuations in voltage or insufficient power supply caused by an overloaded system can damage sensitive electronic equipment and appliances throughout the building.
• Inability to Modernise: Limited electrical capacity prevents the installation of modern amenities that residents increasingly expect, such as efficient air conditioning, updated kitchen appliances, solar panels, and crucially, EV charging stations. This makes the building less attractive and functional.
• Resident Dissatisfaction and Disputes: Persistent power issues, flickering lights, and restrictions on installing desired appliances or EV chargers lead to frustration and disputes among residents. This can create inequality between those with existing installations and those prevented from upgrading.
• Decreased Property Value: Buildings that cannot support modern electrical demands, especially EV charging, become less desirable in the property market. This can negatively impact property values and rental potential.
• Compliance Breaches: The OC has a legal duty under Section 106(1) of the Strata Schemes Management Act 2015 (Cth) to maintain common property, including electrical infrastructure, in good and serviceable repair. Ignoring capacity issues that lead to system failures or safety hazards can result in a breach of this duty, potentially leading to orders from the NSW Civil & Administrative Tribunal (NCAT) or other compliance actions.

How do You Assess Your Strata Building’s Electrical Health?

Conduct Electrical Audits and Energy Assessments

Understanding the current state of your strata building’s electrical system is the essential first step before considering upgrades or new installations like EV charging. Relying on assumptions or waiting for problems to arise can lead to safety risks and costly emergency repairs. Commissioning professional assessments provides the objective data needed for informed decision-making.

Several types of assessments offer valuable insights:

• Electrical Safety/Condition Reports: Conducted by licensed electricians, these focus on immediate safety hazards, the condition of wiring and switchboards, and compliance with current standards like AS/NZS 3000:2018 Wiring Rules.
• Energy Audits/Assessments: These provide a broader view, analysing energy consumption patterns, identifying peak electrical load periods, and calculating the building’s spare electrical capacity. They often highlight energy efficiency opportunities, such as LED lighting upgrades, which can reduce overall demand.
• EV Feasibility Studies: Building on an energy assessment, these specifically evaluate the building’s readiness for EV charging, considering capacity, infrastructure models, load management needs, and potential costs.

A comprehensive assessment performed by qualified professionals, such as licensed electricians, specialist electrical consultants, or energy auditors, should clearly document:

• The building’s current maximum electrical capacity and peak load
• The calculated available spare capacity
• The condition of key infrastructure, like main switchboards, sub-boards, and primary cables
• Any immediate safety risks, defects, or compliance issues
• Recommendations for necessary rectifications or upgrades, including potential costs

Integrate Findings into the Capital Works Fund Plan

The detailed findings and recommendations from electrical assessments are crucial inputs for your strata scheme’s financial planning. Under the Strata Schemes Management Act 2015 (Cth), OCs are required to prepare a 10-year Capital Works Fund (CWF) plan. This plan forecasts anticipated major expenditures on common property and allows the scheme to collect sufficient funds over time through regular levies.

Integrating the results of electrical audits into the CWF plan is vital for several reasons:

• It ensures that necessary electrical maintenance, repairs, and significant upgrades (like switchboard replacements or main cable upgrades) are proactively budgeted for.
• It transforms the management of electrical infrastructure from a reactive approach, often involving disruptive special levies after failures occur, into a strategic, long-term asset management process.
• It aligns with the Strata Schemes Management Act 2015 (Cth) requirement to consider sustainability infrastructure, such as EV charging systems, when preparing CWF estimates.

By incorporating professional electrical assessments into the CWF planning cycle, OCs can ensure their building’s electrical system remains safe, compliant, and capable of meeting current and future demands in a financially sustainable manner. This proactive budgeting minimises the likelihood of unexpected costs and supports the overall well-being and value of the strata property.

What are the Strategies for Managing and Upgrading Electrical Capacity?

Prioritise Energy Efficiency Measures

Before undertaking potentially expensive electrical infrastructure upgrades, OCs should first investigate ways to reduce the building’s overall electricity consumption. Implementing energy efficiency measures can often free up existing electrical capacity, potentially delaying or lessening the need for major upgrades.

This approach addresses the strain on the current electrical system by lowering the baseline demand. Common and effective energy efficiency actions include:

• Upgrading Common Area Lighting: Replacing older, less efficient lighting in areas like corridors, car parks, and lobbies with modern LED technology significantly reduces energy use.
• Optimising Common Loads: Reviewing the operational schedules and efficiency of common property equipment, such as pool pumps, ventilation systems, and heating/cooling, can uncover further savings.
• Encouraging Resident Efficiency: While not directly controllable by the OC, promoting awareness among residents about energy-efficient appliances and behaviours can contribute to lowering the building’s overall peak electrical load.

Energy assessments, often conducted as part of evaluating EV readiness, play a crucial role here. They determine spare capacity and identify specific energy efficiency opportunities, providing a strategic pathway to manage demand before committing to costly infrastructure changes.

Implement Load Management Systems

As strata buildings accommodate more high-demand devices, particularly multiple EV chargers, managing the electrical load becomes critical to prevent overloading the existing infrastructure. Load Management Systems (LMS), sometimes referred to as Demand Management Systems (DMS) or smart charging systems, offer a technological solution to optimise power distribution.

These systems monitor the building’s total electricity usage in real-time. An LMS intelligently distributes the available electrical capacity among connected devices, such as EV chargers.

Key benefits include:

• Preventing Overloads: If the total demand approaches the building’s maximum capacity, the LMS automatically reduces the power supplied to flexible loads like EV chargers, preventing circuit breakers from tripping and ensuring system stability.
• Maximising Existing Infrastructure: By dynamically adjusting charging rates based on real-time building load, an LMS allows more EV chargers to be installed and operate simultaneously than might be possible without management, potentially delaying the need for immediate, costly capacity upgrades.
• Facilitating Scheduled Charging: Some systems allow for scheduling EV charging during off-peak hours when overall building demand and electricity tariffs are lower, further reducing strain and potentially lowering costs.

Implementing an LMS is often essential for shared or whole-of-building EV charging solutions in strata properties. This ensures fair access to charging without compromising the building’s electrical system integrity. Additionally, this technology is a key component of planning and budgeting for EV readiness.

Plan and Execute Infrastructure Upgrades

When energy efficiency and load management are insufficient to meet demand or address safety concerns, physical upgrades to the building’s electrical infrastructure become necessary. Planning and executing these upgrades require careful consideration and professional execution.

Common infrastructure upgrades include:

• Switchboard Modernisation: Replacing aged or undersized main switchboards and distribution sub-boards with modern units that offer higher capacity, space for new circuits (including dedicated EV distribution boards), and incorporate mandatory safety features like RCDs.
• Wiring and Cable Upgrades: Replacing main feeder cables or sub-circuit wiring with larger-gauge conductors capable of handling higher electrical loads safely. This can be complex and disruptive, often requiring work within common property walls and ceilings.
• Network Augmentation: If the limitation lies with the external electricity network supply, the OC must liaise with the local distribution network service provider (Ausgrid, Endeavour Energy, or Essential Energy) to request an upgrade, which can involve significant cost and complexity.

Such upgrades represent major capital expenditure and should be guided by professional assessments and integrated into the scheme’s 10-year Capital Works Fund plan. All electrical upgrade work must be performed by licensed electricians, complying with AS/NZS 3000 Wiring Rules and other relevant NSW regulations.

Obtaining multiple quotes and ensuring compliance certificates are issued is crucial for responsible project execution. Furthermore, proactive planning and future-proofing during upgrades can help accommodate future technologies and resident needs.

How do You Navigate EV Charger Installations in Strata Properties?

Understand Different EV Charging Infrastructure Models

OCs have several models to consider when planning for EV charging infrastructure within their strata building. The best approach depends on factors like building size, budget, expected demand for EV charging, and parking arrangements. Evaluating these options carefully is essential for making a building EV-ready.

Common infrastructure models include:

• Individual Approach (No Existing Infrastructure): Suitable for initial requests in smaller buildings where resident meters are accessible. With this approach:
  • Owners install their EV supply equipment (EVSE), often connecting to their lot’s meter if possible
  • Owners bear the costs ($2,000 — $5,000 per installation)
  • Individual OC approval is required for common property changes and by-laws for each installation
  • This approach doesn’t scale well and contributes directly to the building’s peak electrical load
• Individual Approach (Using Existing Circuits): Applicable for apartments or townhouses with individual distribution boards within the residence. In this case:
  • Owners may add or reuse a circuit, simplifying billing as usage is captured by their existing meter
  • Load control or interlocks might be needed to prevent overloading circuits shared with high-power appliances
  • OC approval is still necessary to manage the impact on the building’s overall electrical capacity
  • Costs are typically borne by the owner ($2,000 — $5,000)
• Shared Use on Common Property: The OC installs one or more EV chargers in common areas like visitor parking, powered by the common property meter. This model:
  • Suits buildings where individual installations are impractical or too costly
  • Requires the OC to manage access fairly (e.g., scheduling, time limits) and establish a cost recovery method
  • Costs are borne by the OC ($20,000 — $50,000), potentially higher for faster DC chargers
• Modular (Phased) Approach: The OC installs a foundational ‘EV charging backbone’ (dedicated wiring, EV distribution boards, meters, cable trays) in stages, often supporting around 6 EVSEs per phase. This approach:
  • Allows owners to connect their individual EVSE to this backbone, typically paying for the final connection ($2,000 — $3,000 each)
  • Offers scalability and allows for load management
  • Suits small to medium buildings with limited initial budgets
  • Future-proofs the electrical infrastructure incrementally
  • Requires the OC to fund the backbone ($5,000 — $7,000 per phase)
• Whole-of-Building Approach: A comprehensive EV charging backbone is installed upfront to potentially service every car space. This method:
  • Often involves high-capacity feeds, extensive cable trays, and sophisticated load management and billing systems (usually outsourced)
  • Future-proofs the building for high EV adoption, but has the highest upfront cost for the OC ($75,000 — $200,000+ for the backbone)
  • Requires owners to pay for their final EVSE connection ($2,000 — $3,000 each)
  • Is most suitable for large buildings or new developments aiming for premium value

Consider Legal Requirements and Approval Processes for EV Charging Installation

Installing EV charging infrastructure in NSW strata properties involves navigating specific legal requirements and approval processes, primarily governed by the Strata Schemes Management Act 2015 (Cth). Understanding these steps is crucial for both owners seeking to install EV chargers and OCs managing the process.

Key legal and approval considerations include:

• Sustainability Infrastructure Amendments: The Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2020 classifies EV charging infrastructure as ‘sustainability infrastructure.’ This significantly alters the approval process by lowering the threshold needed. Instead of requiring a special resolution (no more than 25% voting against), a resolution to approve sustainability infrastructure works or related by-laws generally passes if less than 50% of the unit entitlements vote against it, facilitating the adoption of EV charging.
• OC Approval: Owners wishing to install EV charging equipment must first seek approval from the OC, usually by contacting the strata committee or strata manager. This applies even if connecting to the owner’s own meter, as installation often involves alterations to common property electrical wiring or infrastructure. Tenants must seek approval via their landlord.
• Capital Works Fund (CWF) Consideration: A prerequisite for using the sustainability infrastructure resolution pathway is that the OC must have considered the infrastructure in its 10-year CWF plan.
• By laws: Establishing clear by laws is essential for managing EV charging installations and usage effectively. These by-laws, which require OC approval (typically via the sustainability infrastructure resolution process), should cover:
  • The application and approval process for installations
  • Technical standards and types of permitted chargers
  • Responsibility for installation, maintenance, and electricity costs
  • Rules for using shared facilities
  • Cost recovery mechanisms for electricity usage
  • Safety and compliance requirements
• Motions and Documentation: The OC needs to pass appropriate motions at a general meeting to approve the chosen infrastructure approach, associated expenditure, and any necessary by laws. The NSW Government provides template motions and by-laws to assist strata schemes with this process. Owners seeking individual installations will typically need to submit a formal application, potentially using a standardised request form.

Explore Funding and Cost Recovery Options for EV Charging Systems

Financing EV charging infrastructure and managing ongoing electricity costs are significant considerations for strata schemes. OCs must decide how to fund the initial installation and establish fair methods for recovering electricity costs from users.

Funding options for the infrastructure itself include:

• Capital Works Fund (CWF): As EV charging is often a common property upgrade, the CWF is a primary funding source, particularly for shared, modular, or whole-of-building approaches. Proactive inclusion in the 10-year CWF plan allows funds to be raised gradually.
• Special Levies: If CWF funds are insufficient, the OC can raise a special levy from owners, requiring approval at a general meeting.
• Owner Funding: In individual installation models, the owner typically bears the cost of their EVSE and connection. For modular or whole-of-building systems, the OC often funds the backbone, while owners pay for the final connection to their space.
• Government Grants: The NSW EV Ready Buildings Grant program offers co-funding for feasibility assessments and infrastructure upgrades in eligible strata buildings. This significantly reduces the cost burden on the OC, as applicants typically contribute a small amount for the assessment, and the grant covers a large percentage of infrastructure costs up to a cap.

Establishing fair cost recovery for electricity consumed is crucial. The options include:

• Usage Billing (Metered Rate): Considered the fairest method, this requires sub-metering to track individual consumption. Costs are billed based on kWh usage and can be managed internally or outsourced to a billing provider (often involving subscription fees).
• Flat Fee: A simpler option where users pay a fixed amount (e.g., per day, quarter, or year). This is easier to administer, but less accurate in reflecting actual usage.
• Use Existing Meter: If the charger connects directly to an owner’s lot meter, usage costs are automatically included in their electricity bill.
• No Usage Fee (OC Absorbs Costs): This is the simplest approach initially, but becomes unsustainable and potentially unfair as EV usage grows, burdening all owners through general levies.

The chosen funding and cost recovery methods must be agreed upon by the OC via the appropriate resolution and clearly documented in the scheme’s by-laws. This ensures transparency and prevents disputes between EV owners and other residents.

What are Legal and Compliance Considerations for NSW Strata Schemes?

OC Responsibilities Under Strata Schemes Management Act 2015

The OC holds the primary legal responsibility for managing and maintaining the common property within a NSW strata scheme. This duty is clearly defined under Section 106(1) of the Strata Schemes Management Act 2015 (Cth), which mandates that the OC must properly maintain and keep the common property in a state of good and serviceable repair.

This responsibility encompasses key electrical components designated as common property, such as:

• Main switchboards and distribution sub-boards serving common areas or multiple lots
• Electrical wiring and cables located within common property boundaries that serve more than one lot
• Fixtures and fittings related to the common electrical system

Failure by the OC to fulfil this statutory duty can lead to significant consequences. If common property electrical systems fall into disrepair or become unsafe due to inaction, the OC may face orders from the NCAT to carry out necessary repairs or even pay damages to lot owners who suffer loss as a result.

Proactive maintenance and addressing capacity issues are, therefore, essential aspects of the OC’s legal obligations.

Navigate Approvals Sustainability Infrastructure & By Laws

Introducing changes to common property electrical systems, especially for upgrades or new installations like EV charging, requires navigating specific approval processes outlined in the Strata Schemes Management Act 2015 (Cth). Significant expenditure on upgrades typically requires approval via resolutions passed at a general meeting.

The Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2020 introduced specific provisions for ‘sustainability infrastructure,’ which explicitly includes EV charging stations. This amendment simplifies the approval pathway for such installations:

• Instead of requiring a special resolution (where no more than 25% of unit entitlements vote against), a sustainability infrastructure resolution passes if less than 50% of the unit entitlements vote against it
• A prerequisite for using this pathway is that the OC must have considered the sustainability infrastructure in its 10-year Capital Works Fund (CWF) plan

While this lower voting threshold facilitates the adoption of technologies like EV charging, it’s crucial that the OC still conduct thorough assessments to ensure the building’s electrical system can safely support the additional load.

Establishing clear by laws is also essential for managing electrical upgrades and installations, particularly for EV charging. By laws, which themselves require OC approval (often via the sustainability infrastructure resolution process for EV-related matters), provide the necessary governance framework. They should cover aspects such as:

• The application and approval process for installations
• Technical standards and permitted equipment types
• Responsibility for installation, maintenance, and electricity costs
• Rules for using any shared facilities
• Cost recovery mechanisms for electricity usage from common supplies
• Safety and compliance requirements

The NSW Government provides template motions and by-laws to assist strata schemes in developing appropriate documentation for managing EV charging installations and related electrical works.

Ensure Safety Standards and Compliance

Ensuring the safety and compliance of all electrical infrastructure within a strata scheme is a critical responsibility. All electrical work, from minor repairs to major upgrades, must adhere to strict safety standards and regulations.

Key safety and compliance considerations include:

• Australian Standards: All electrical wiring work must comply with AS/NZS 3000:2018 (the Wiring Rules), which sets the benchmark for safe electrical installations in Australia
• NSW Service and Installation Rules: These rules govern the connection of electrical installations to the electricity distribution network, ensuring safety and reliability
• Licensed Professionals: It is a legal requirement in NSW that all electrical wiring work is performed only by appropriately licensed electricians. OCs must verify contractor licences before engaging them
• Safety Switches (RCDs): RCDs are vital safety features that protect against electric shock. Current standards mandate their installation on PowerPoint and lighting circuits

OCs must ensure RCDs are installed on common property circuits where required and tested regularly. Lot owners are responsible for RCDs within their individual lots.

Additionally, compliance certification is essential:

• OCs should obtain and retain compliance certificates (e.g., Certificate of Compliance for Electrical Work—CCEW) for all electrical work performed on common property
• Fire safety must be considered, particularly with EV charging installations. This includes appropriate installation practices, potential need for smoke or heat alarms near charging points, and adherence to guidance from resources like the Australian Building Codes Board (ABCB) advisory note and EV FireSafe
• Regular inspections help identify potential hazards like degraded wiring, faulty components, or non-compliant work before they lead to serious incidents

Adherence to these standards and practices is essential not only for resident safety and well-being, but also for meeting the OC’s legal obligations and mitigating liability risks associated with electrical faults or failures.

Conclusion

Effectively managing electrical capacity in NSW strata buildings is essential to address aging infrastructure and rising energy demands, particularly from EV charging. Proactive assessment, strategic planning through the Capital Works Fund, and understanding legal obligations under the Strata Schemes Management Act 2015 (Cth) are crucial for ensuring safety, compliance, and future-readiness.

Navigating the complexities of electrical upgrades, EV charging integration, and strata regulations requires expert guidance. Contact PBL Law Group today for trusted expertise in strata law to ensure your building effectively manages its electrical capacity and meets its legal requirements.

Frequently Asked Questions (FAQ)