Transformer up to a size of 200 KVA, used to step down the distribution voltage to a standard service voltage, are known as distribution transformers. They are kept in operation all the 24 hours a day whether they are carrying load or not. Energy is lost in iron losses throughout the day while the copper losses account for loss in energy when the transformer is loaded.
Therefore, the distribution transformer should have their iron losses small as compared to full load copper losses, in other words, they should be designed to have maximum efficiency at a load much lower than full load about 50 percent. Owing to low iron loss, the distribution transformer have good all day efficiency. These transformer have a good voltage regulation.