Over the years, transformer accidents have caused power failures and damaged switchyard equipment, resulting in the loss of electrical power and voltage drops and consequently serious disruptions in productivity. In light of this, data from the Taiwan Power Company was analyzed in order to determine the potential for oil immersed transformers to have accidents that could result in fires. Failure mode and effect analysis was used to investigate the failure modes of important components and possible effects on the oil immersed transformer. This analysis was offered to domestic transformer manufacturers. The inherently safer design strategy for designing, manufacturing, installing, and operating transformers included safeguards, such as intensification, substitution, attenuation, limitation of effects, avoiding the knock-on effect, fail-safe design, making clear the status, ease of control, and software controls, to eliminate or minimize potential hazard factors.