1. When Electricity passes through a Conductor, there is Transmission loss in the form of Heat. It is also known as Ohmic Loss.
Power Loss = I^2 Rt
Where I = Current
R = Resistance of the Conductor
t = time
So if we transmit larger currents, the loss will be more.
However, in AC, there is a relation for the Transformers
I1V1=I2V2
ie, when the Voltage at one end of the transformed increases, Current decreases.
This is because, we have to keep the product of Current and Voltage constant.
So if we can transmit the Current at Higher Voltage, it will reduce the current through the Conductor and in effect the Ohmic Power loss will decrease.
2. Long distance Power Transmission is possible with Higher voltage. This can be easily achieved using the Transformers in AC, However Stepping up and Stepping Down using Transformers are not possible in DC.