Electricity Room in Properties 2026: Complete Guide to Requirements, Specifications, Compensation, and Property Owner Rights

Introduction: The Electricity Room - An Unwelcome Guest in Your Property!

If you're planning to build a residential apartment building or commercial property in Saudi Arabia, you might be surprised by a strange requirement from the municipality or electricity company: you must dedicate an entire room in your property for an electrical transformer! Yes, a room from the best facade of your property, built at your expense, handed over to the company, and in most cases without any financial compensation.

This topic causes the most frustration and confusion for property owners. Many questions come to mind: Why me specifically? Do they have the right to take part of my property? Will I get compensation? What if I refuse? And will this room serve only my property or the neighbors too?

In this comprehensive guide, we will answer all these questions and more. We will explain in detail everything you need to know about electricity rooms: when they are required, their specifications, your rights, and how to get your compensation if you are entitled to it.

First: What is an Electricity Room and Why is it Required?

An electricity room or transformer room is a dedicated space inside or adjacent to a building, containing an electrical transformer that converts medium voltage to low voltage suitable for residential and commercial use. This room is necessary when the building's electrical loads are large and the existing network cannot cover them.

Why Isn't the Street Transformer Sufficient?

Street transformers (green cabins) have limited capacity. When new buildings and apartments are built in an area, electrical loads increase and exceed the capacity of existing transformers. This is when a new transformer is needed, and instead of the electricity company building a station in the street, they ask the new building owner to dedicate a room inside their property.

The Concept from the Electricity Company's Perspective

From the company's point of view, this procedure saves them the costs of buying land and building separate stations, and ensures service reaches buildings with high loads. But from the owner's perspective, they lose valuable space from their property that could have been a commercial shop or income-generating apartment.

Second: When is an Electricity Room Required for Your Property?

Not every building is required to dedicate an electricity room. There are specific criteria that determine when this requirement is necessary:

First Criterion: Size of Electrical Loads

If your building's expected electrical loads exceed 400 amperes, the electricity company will require you to dedicate a room for an electrical transformer. This practically means that any medium-sized or larger residential building will likely need an electricity room.

Second Criterion: Number of Residential Units

As a general rule, buildings containing more than 6 apartments or independent units will usually need a dedicated transformer. Some areas and new developments require the room even for fewer units.

Third Criterion: No Available Capacity in Nearby Stations

Even if your loads are less than 400 amperes, if nearby stations are full and cannot accommodate additional loads, you may be required to provide an electricity room. This often happens in crowded old neighborhoods.

Fourth Criterion: Commercial and Industrial Buildings

Commercial and industrial buildings that need high electrical power (factories, malls, hotels) are required to have transformer rooms regardless of their location.

How Do You Know If Your Building Needs an Electricity Room?

When applying for a building permit through the Balady platform, coordination with the electricity company is automatic. You will receive a coordination certificate that clarifies whether your building needs an electricity room or not, and specifies its location and specifications if required.

Third: Technical Specifications for the Electricity Room

An electricity room is not an ordinary room. There are strict technical specifications that must be followed, otherwise the electricity company will refuse to accept it:

Area and Dimensions

The minimum area for a single transformer room is 20 square meters, with approximate dimensions of 4 × 5 meters. If the building needs more than one transformer, the area increases by multiples of these dimensions. The internal height should not be less than 3.5 to 4 meters to ensure adequate ventilation and workspace for maintenance.

Location

The room must be on the ground floor with direct external access. It is preferred to be in a corner of the building to facilitate cable and equipment entry. It should be elevated at least 60 cm above street level to prevent rainwater or flooding from entering.

Door

The electricity room door has very specific specifications: it must be made of fire-resistant iron for at least 90 minutes. It must open outward, not inward, to facilitate evacuation in emergencies. It must be painted with non-conductive paint. A special lock must be installed that only opens with electricity company keys.

Ventilation

Electrical transformers produce heat during operation, so ventilation is essential. Adequate ventilation openings must be provided, usually two: one lower for cool air entry and another upper for hot air exit. Some rooms need additional mechanical ventilation (exhaust fans).

Floor and Walls

The floor must be reinforced concrete to bear the heavy transformer weight. An oil drainage channel must be made in case of transformer oil leakage. Walls must be fire-resistant and thermally insulated.

Ceiling

The ceiling must be reinforced concrete and waterproofed. No water source such as tanks or bathrooms may be above the transformer room.

Safety Requirements

A fire extinguisher suitable for electrical fires must be provided. Clear warning signs in Arabic and English must be posted. Emergency lighting must be provided. Barriers must be installed to prevent animals and rodents from entering.

Fourth: Who Bears the Cost of Building the Room?

This is the question that hurts every property owner: who pays? Unfortunately, the answer is not in the owner's favor in most cases.

Construction Costs

The owner bears the full cost of building the electricity room including: structural work (concrete, walls, ceiling), waterproofing and thermal insulation, the fire-resistant iron door with its special specifications, ventilation openings, interior finishes, and lighting. These costs can range from 30,000 to 80,000 SAR depending on the room size and specifications.

Electrical Equipment Costs

The transformer itself and electrical equipment (distribution panels, cables, etc.) are covered by the electricity company. This is the only thing the owner doesn't pay for.

Maintenance Costs

Another surprise: the electricity company requires the owner to maintain the room's cleanliness and lighting! Yes, you pay an electricity bill to light a room that isn't yours.

Fifth: Is the Room Only for Your Property or for Neighbors Too?

This is a crucial point that determines whether you are entitled to compensation or not:

Scenario One: The Room Serves Only Your Property

If the transformer in your room only feeds your building and no other property benefits from it, unfortunately you are not entitled to any financial compensation from the electricity company. You are the sole beneficiary, and therefore bear the full cost and lost space.

Scenario Two: The Room Serves Other Properties

If the transformer in your room feeds your property plus neighboring properties (your neighbors for example), then you are entitled to claim annual compensation from the electricity company. This compensation is 100 SAR per square meter of room area annually.

How Do You Know If Your Room Serves Others?

You can inquire directly from the electricity company or through their app. Ask them for a statement of properties fed from your room's transformer. If you find any property other than yours, you are entitled to compensation.

Special Case: Extension to Neighbor

If your neighbor's property cannot get electricity from existing stations and requests to be fed from your transformer, upon your approval you become entitled to annual compensation. But note: compensation in this case may be only 25 SAR per square meter if the benefiting building's loads do not exceed 400 amperes.

Sixth: Financial Compensation in Detail

Let's talk numbers about the compensation you can claim:

Basic Annual Compensation

According to the Electricity Services Regulation Guide issued by the Electricity Regulation Authority, if the transformer room in your property feeds other subscribers besides you, you are entitled to: annual compensation of 100 SAR per square meter of the allocated area. Example: If the room area is 20 square meters, you are entitled to 2,000 SAR annually.

Reduced Compensation

In some cases, compensation is only 25 SAR per square meter annually, when the loads of benefiting buildings do not exceed 400 amperes. Example: 20 square meter room = only 500 SAR annually.

When Are You Not Entitled to Any Compensation?

You are not entitled to any compensation in the following cases: if you are the sole beneficiary of the transformer, if the transformer existed before you purchased the property and the previous owner waived the compensation right, or if the room location is within regulatory setbacks and not from the buildable area.

How to Claim Compensation

Submit a formal request to the electricity company via their website or app. Attach your property deed. Attach proof that the room feeds other properties. Follow up on the request until approval. Compensation will be paid annually to your bank account.

Is the Compensation Fair?

Frankly, many owners consider the compensation unfair and unjust. 100 SAR per meter annually means only 2,000 SAR for a 20-meter room, while if this space were a commercial shop you could rent it for 2,000 SAR monthly or more! This large disparity makes many feel wronged, and it is a topic of ongoing debate between owners and the electricity company.

Seventh: Can You Refuse to Allocate an Electricity Room?

The question many ask: what if I refuse?

Short Answer: You Cannot

If the coordination certificate requires an electricity room, you will not get a building permit without it. If you build without a permit, you won't get electricity service anyway. You're in a bind: either accept the room or don't build or build without electricity!

Are There Exceptions?

Yes, in one case: if there is a nearby distribution station with sufficient capacity to feed your building. In this case, you can ask the electricity company to feed from that station instead of creating a new room. But the final decision is up to the company, not you.

Practical Advice

Before buying land or starting your building design, get a coordination certificate from the electricity company. This will clarify early whether you will need an electricity room, and thus you can calculate the true project cost and make an informed decision.

Eighth: Common Problems with Electricity Rooms

From owners' actual experiences, these are the main problems they face:

Visual Disfigurement

The electricity room is often on the best facade of the building (the front), which disfigures the property's general appearance. The heavy green iron door doesn't match the elegant architectural design you want for your property.

Income Loss

The space allocated for the room (20 meters or more) could have been a commercial shop generating monthly income. This is a real economic loss not compensated by 100 SAR per meter annually.

Maintenance Disruption

Electricity company technicians will need to enter your room periodically for maintenance. They may need to dig in front of your property to extend new cables. This causes recurring inconvenience.

Health Concerns

Some residents worry about health effects from electromagnetic fields emitted by the transformer. Although official studies confirm that modern transformers are safe, concern remains and affects property value and rentability.

Difficulty Selling

When selling your property, having an electricity room may be a negative factor that lowers the price. Buyers don't like the idea of having an electrical transformer adjacent to their home.

Safety Risks

Although rare, there are recorded incidents of transformer explosions or fires. Having the transformer inside the building increases potential risks to residents.

Ninth: Your Rights as a Property Owner

Despite all restrictions, you have rights you should know:

Right to Compensation (If Conditions Are Met)

If the transformer feeds properties other than yours, you have the right to annual compensation of 100 SAR per square meter. Don't waive this right and don't be lazy about claiming it.

Right to Inquiry

You have the right to know who benefits from the transformer in your property. Request this information from the electricity company in writing.

Right to Complain

If you feel wronged or treated unfairly by the electricity company, you can file a complaint with the Electricity Regulation Authority. The Authority is an independent regulatory body whose mission is to protect consumer rights.

Right to Legal Action

If the room is within your property deed boundaries and you haven't received fair compensation, you have the right to file a lawsuit in court to demand fair monthly rent or transformer removal.

Tenth: How to File a Complaint Against the Electricity Company

If you face a problem with the electricity company regarding the transformer room, follow these steps:

Step One: Complain to the Electricity Company

First submit your complaint to the electricity company itself via: the mobile electricity app, the website se.com.sa, calling 920001100, or visiting the nearest service office. Keep the complaint number and follow up.

Step Two: Escalate to the Electricity Regulation Authority

If your complaint is not resolved within 15 days, or you are not satisfied with the solution, escalate your complaint to the Electricity Regulation Authority: website sera.gov.sa, toll-free number 8001259000. The Authority will contact the company and require them to respond and resolve.

Step Three: Legal Action

If you have exhausted all administrative routes, you can file a lawsuit in administrative court to claim your rights. It is advisable to use a specialized lawyer in this case.

Eleventh: Golden Tips for Property Owners

Before Buying and Building

Get a coordination certificate from the electricity company before buying the land. Make sure of the required electricity room location and its impact on your design. Calculate the room construction cost within the project budget. Inquire about the possibility of feeding from an existing station instead of a new room.

During Construction

Strictly adhere to technical specifications to avoid rejection and rework. Use a specialized contractor to build the electricity room. Document everything with photos and documents. Get electricity company approval at each stage before continuing.

After Construction

Ensure the electricity company officially receives the room. Request a statement of properties fed from your transformer. If there are other properties, submit a compensation request immediately. Keep copies of all documents and correspondence.

Frequently Asked Questions

Can I convert the electricity room to another use after a period?

No, the room is dedicated to the transformer as long as the building exists and uses electricity. You cannot convert it to any other use.

What if I want to demolish the building and rebuild?

You will need to coordinate with the electricity company. They may require you to provide temporary alternative power to other properties benefiting from your transformer during the demolition and reconstruction period.

Is compensation paid automatically?

No, you must apply to receive compensation. The electricity company will not pay you anything on its own.

Can I rent the electricity room to the electricity company at market price?

Unfortunately, the current system specifies compensation at only 100 SAR per meter. But you can demand fair market rent through the courts, and some owners have succeeded in this.

What if I buy a property with an existing electricity room?

Check the compensation status with the previous owner. If they were receiving compensation, request the right to be transferred to you. If there was no compensation, verify the reason: is it because they were the sole beneficiary or because they didn't claim?

Does having an electricity room lower property value?

Usually yes, especially if it's in a prominent location. Buyers may request a reduction due to health concerns or visual disfigurement. But some investors see it as an advantage because it means guaranteed electricity availability for the building.

Conclusion

The electricity room is an unavoidable reality for many property owners in Saudi Arabia, especially with urban expansion and increasing electrical loads. Although it seems unfair, knowing your rights and claiming them reduces its financial impact.

Always remember: if your room feeds other properties, you have the right to compensation of 100 SAR per meter annually. Don't neglect claiming this right, and if you face rejection, escalate your complaint to the Electricity Regulation Authority or the courts.

We hope this guide has answered your questions. Share it with friends and relatives planning to build so they know what awaits them.