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Resistance in the length of wire that makes up the extension cord causes voltage to drop. But it needn't be a problem with the right extension cord. For an electric drill, up to a 25 foot cord of 16 gauge wire will cause a voltage drop so small as to be negligible. For 50 feet, switch to a 14 gauge cord. For heavier power tools (circular saw in particular) you should use a 14 gauge extension from the get-go.

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Q: Why is the voltage at the end of a long extension lead used with an electric drill less than the mains supply voltage?
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