It can cause short circuits, arcing, and overheating. It can also accelerate corrosion, weakening the metal parts of the electrical system and affecting the grounding and bonding. Damp electrical wiring can create havoc with electrical systems as water and electricity are not intended to mix. Why does Damp Affect Electrics? Do I need a rewire after a flood? What other issue caused by damp can affect electrics? Can a consumer unit be moved out of the basement? 1) Damp. How do you deal with moisture problems that can cause short circuits? You've probably seen it before: mold on the wall, leaks in the meter box, or damp electrical outlets. Think of condensation on wiring, leaks. In small power transmission and transformation equipment such as distribution boxes, switchgear,power distribution cabinets, and outdoor terminal boxes, humid air can easily cause rust and corrosion of metal bodies and shorten the service life of the equipment. Water carries electricity, causing it to leave its proper path.