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We may or may not understand it but power generation, transmission and distribution is a commercial activity like any other manufacturing or service industry. Of course due to very nature with the product, referring under essential services which are regulated closely by the government in many countries. Still the primary motive of companies coping with power generation and distribution is to earn profit by selling that electricity. In this article we're going to find out about the meaning of tariff as well as the several types of expenses related to power generation. Transformers do not actually make conversion between mechanical and electrical form, but they transfer electric power from one circuit to another circuit. They can decrease or increase the voltage while transferring the power without changing the frequency, but with the corresponding increase or decrease in the current. Transformers also belong to electrical machines.

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