We looked at the need for voltage regulation but how do we actually go about achieving it? Several types of voltage regulators are based on different principles but we will limit ourself to those using transformers as the main ingredient for the voltage regulation recipe.
In the example of the household arrangement, there are transformers which have a servo mechanism for varying the output voltage based on load feedback.
In case of variable regulation requirements such as the case of the welding transformer discussed above, most of the welding transformers by having a mechanical system for moving the iron core in and out of the magnetic couplings so as the deliberately reduce the regulation effect.
Voltage regulation is not only required from the load point of view but also the primary voltage may change and the secondary voltage needs to be maintained constant for reasonable variations of the primary voltage. A method which is effective in such a case is the use of a ferroresonant transformer for automatic voltage control. These transformers operate under conditions of persistent core saturation which means that any variations in the voltage within reasonable limits does not affect the output voltage significantly thus achieving the voltage regulation. These types of transformers usually have two secondary windings. One is used to supply the output voltage while the other acts as a harmonics filter to filter out harmonics created by core saturation. The figure below illustrates this concept clearly.

click to enlarge
Hence we have seen that transformers can also be used for partial voltage regulation apart from stepping up or stepping down of the voltage.