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What is meant by regulation in a transformer?

Voltage regulation in transformers is the difference between the no load voltage and the full load voltage. This is usually expressed in terms of percentage.  For example: A transformer delivers 100 volts at no load and the voltage drops to 95 volts at full load, the regulation would be 5%. ACME dry type distribution transformers generally have regulation from 2% to 4%, depending on the size and the application for which they are used.