There are increasing calls for more accurate power loss measurements in electrical steels. This paper presents the flux controlling technique in electrical steels using digital feedback technique. The various parameters that affect the measuring efficiency have also been analyzed. Digital feedback technique is used since it has the advantages of good reproducibility of the waveform due to ease of calibration and its stability with respect to time as well as reduces human error. Furthermore, it has no oscillation of the control system compared to the analog feedback technique. This technique was designed by using Simulink, MATLAB R12, Version 6.0. The digital feedback circuitry, which has been designed, is proved to be successful where the output waveform is a sinusoidal waveform of 50Hz. It is shown that the harmonic component increases as the distortion factor increases. It also indicates that the average distortion factor for nth harmonic to the distorted waveform is typically less than 1.5 and meaningful measurements can be performed.