Transformers form the backbone of a modern A. C. power system; consisting of hundreds and thousands of transformers from generation to transmission and distribution. Utilities spend extensively on purchase and maintenance of transformers. Precious wealth can be saved if the cost of transformers is reduced somehow. This work is aimed at designing a distribution transformer for the utilities, which operates at high frequency. The size of transformer decreases by raising the operating frequency. A power electronic circuit has been designed for increasing the power frequency, it slices the incoming wave form at a rate of 1 kHz; this sliced waveform is applied at the transformer's input, which sees it as a high frequency. A 10kVA transformer has practically been designed, with operating frequency of 1 kHz. Another electronic circuit is used at the output to restore the frequency back to normal. Cost comparison has been performed between an ordinary 10kVA transformer and the one newly designed along with the solid state circuits used for frequency conversion. Remarkable saving has been observed about 43% in this particular case. Thus new installations will result in tremendous savings for the utilities.