Voltage drop is the reduction in voltage that occurs as electrical current flows through a cable. All cables have resistance, and that resistance causes a voltage loss between the supply end (the distribution board) and the load end (the socket, light, or appliance). The longer the cable, the higher the current, and the smaller the conductor — the greater the voltage drop.
Excessive voltage drop can cause problems. Lighting circuits may produce dim or flickering lights. Motor loads may fail to start or run inefficiently. Electronic equipment may malfunction or shut down. In extreme cases, equipment can be damaged. BS 7671 sets maximum voltage drop limits to ensure that the voltage at the load is high enough for equipment to operate correctly and safely.
Voltage drop is part of the cable sizing process. After selecting a cable based on its current-carrying capacity and correction factors, you must verify that the voltage drop across the cable length does not exceed the BS 7671 limits. If it does, you need to increase the cable size until the voltage drop is within limits.