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The answer is: simply because of historical reasons. Somebody once started distributing 110V ac and appliances were sold to match this. By going this way, it became a standard. In some European countries we've seen the same value being used in the past. I do know that in the 1950s a change and standardization of 220V ac was implemented in the Netherlands, where different values were used in different local nets before. The benefits of standardization are clear (travelling - easier distribution of equipment, and so on).

The choice for 220V (now 230V) was based on reducing the distribution losses: the higher the voltage, the lower the distribution loss because the current is then also lower, for the same amount of electrical power.

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