Does racking a breaker constitute live work

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Sensing differential across the transformer would trip the upstream breaker.

Sure it would, if there was a breaker to trip. Typically in industrial facilities a MV/LV transformer is fed by a fused load break switch. The next breaker upstream usually feeds several subs so differential realys would have to shut half the facility down.

If you want to mitigate this type of system the best way is to retrofit a mini VCB in the load break switch where the fuses are located, but that gets expensive pretty fast.
 
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