Electricity distribution transformers are essential for the operation of the electricity system. Their function is to step the supply voltage down from transmission voltages of 33,000 volts and above to the 415 volt three-phase supply which most electricity users receive (a single phase of this supply is 240 volts). Industry sources estimate that there are about 577,000 utility-owned distribution transformers in use in Australia, and their number is increasing at about 1.5% per annum.The proposal is to introduce mandatory minimum energy performance standards for all electricity distribution transformers of up to 2500 kVA capacity, falling within the scope of a proposed new part of Australia Standard AS2374-1-2 2001: Power Transformers: minimum energy performance standards for distribution transformers. They are expressed in terms of minimum efficiency levels at half rated load. It is recommended that:States and Territories implement the proposed mandatory minimum energy performance standards.The mode of implementation be through amendment of the existing regulations governing appliance energy labelling and MEPS in each State and Territory.The amendments should:add electricity distribution transformers to the schedule of products for which minimum energy performance standards are required, and refer to the MEPS levels in Tables 1 and 2 of AS2374.1.2 (proposed part);add electricity distribution transformers to the schedule of products requiring energy labelling, so that any transformer for which the claim of "high efficiency" or "energy efficient" are made must meet the energy efficiency criteria in Tables 3 and 4 of AS2374.1.2 (proposed part);require registration of models, so invoking Appendix A of the proposed Standard.allow transformers manufactured or imported prior to the date of effect of the regulations to continue to be lawfully sold indefinitely.Governments make the register of electricity distribution transformer characteristics publicly accessible, so prospective purchasers can compare their energy efficiencies.