A transformer arrangement comprising a transformer having a primary and a secondary winding (12P, 12S), a current regulator and an output handling module comprising a voltage regulator portion and a circuit breaker portion, said output handling module being connected to the secondary winding and connectable in series between said winding and a load via an alternating current link and said current regulator being connected in parallel with at least one winding (12S; 12T; 12T1, 12T2, 12T3, 12T4, 12T5) magnetically coupled to the primary winding and said current regulator being connected to the voltage regulator portion of the output handling module via at least one direct current link such that active and/or reactive power can be injected in the alternating current link using the current regulator and voltage regulator portion, wherein the at least one winding with which the current regulator is connected in parallel is at least one tertiary winding (12TA, 12TB, 12TC, 12TD, 12TE; 12T), wherein the current regulator comprises a number of current regulator sections (20A, 20B, 20C, 20D, 20E), each connected to a corresponding voltage regular section (16A, 16B, 16C, 16D, 16E) of the voltage regulator portion via a corresponding dc link, wherein each current regulator section (20A, 20B, 20C, 20D, 20E) is connected in parallel with a corresponding tertiary winding (12TA, 12TB, 12TC, 12TD, 12TE; 12T), or wherein all current regulator sections (20A, 20B, 20C, 20D, 20E) are connected in parallel with the same tertiary winding characterized in that the output handling module comprises a chain link of switching blocks connected to the secondary winding, said switching blocks comprising a first set of voltage contribution blocks forming the voltage regulator portion and a second set of circuit breaker blocks forming the circuit breaker portion, wherein the first set of voltage contribution blocks is configured to add an offset voltage (ΔV) to the voltage (V TS) output by the transformer and the second set of circuit breaker blocks is configured to interrupt or limit a current (I load) running through the chain link. wherein the current regulator comprises a number of current regulator sections (20A, 20B, 20C, 20D, 20E), each connected to a corresponding voltage regular section (16A, 16B, 16C, 16D, 16E) of the voltage regulator portion via a corresponding dc link, wherein each current regulator section (20A, 20B, 20C, 20D, 20E) is connected in parallel with a corresponding tertiary winding (12TA, 12TB, 12TC, 12TD, 12TE; 12T), or wherein all current regulator sections (20A, 20B, 20C, 20D, 20E) are connected in parallel with the same tertiary winding characterized in that the output handling module comprises a chain link of switching blocks connected to the secondary winding, said switching blocks comprising a first set of voltage contribution blocks forming the voltage regulator portion and a second set of circuit breaker blocks forming the circuit breaker portion, wherein the first set of voltage contribution blocks is configured to add an offset voltage (ΔV) to the voltage (V TS) output by the transformer and the second set of circuit breaker blocks is configured to interrupt or limit a current (I load) running through the chain link.