What is the primary consequence of reduced efficiency in transformers?

The primary consequence of reduced efficiency in transformers is higher energy loss and operational costs. When a transformer operates less efficiently, more electrical energy is converted into heat rather than being delivered to the output. This wasted energy represents a financial loss and contributes to increased operational costs, as more energy must be supplied to achieve the desired output. Additionally, the need for cooling may arise due to the excess heat, which further adds to operational expenses. Therefore, efficiency is crucial in transformers for both economic and performance reasons, making higher energy loss and operational costs a direct outcome of reduced efficiency.