Effectiveness of using a parallel active power filter to compensate for the flicker of an electric arc furnace,\nand mitigate the reactive power consumption and terminal\nvoltage variation in the grid is presented and evaluated in the contribution. The model of a power system with the electric arc furnace and parallel active power filter in the frequency domain has been developed. The selected results of simulation in the frequency domain using the data collected from the 60 t EAF are presented and evaluated