Why is it important to understand losses as a running cost?

Running cost is essentially the cost of electricity, measured in kWh. These costs are affected by the efficiency of the transformer. All transformers have both no-load losses and load losses. The monthly cost of electricity for low loss transformers is lower than that of those with higher losses. However, the capital cost of a low loss transformer will be higher due to the design requirements to meet lower losses. By understanding the projected future losses of each transformer, the specifier can quantify the running cost over the expected lifespan of the equipment. A design for lower losses may result in a higher purchase price for each unit, but this may well pay itself back in running cost savings over time. This is particularly pertinent where energy costs are rising rapidly each year.