As a source or sink of reactive power, compensators can be made from a voltage sourced inverter circuit with the a.c. terminals of the inverter connected to the system through an inductive link and with a capacitor connected across the d.c. terminals. Theoretical calculations on linearised models of the compensators have shown that the parameters characterising the performance are the reduced firing angle and the resonance ratio. The resonance ratio is the ratio of the natural frequency of oscillation of the energy storage components in the circuit to the system frequency. The reduced firing angle of the inverter divided by the damping coefficient, β, where β is half the R to X ratio of the link between the inverter and the system. The theoretical results have been verified by computer simulation and experiment. There is a narrow range of values for the resonance ratio below which there is no appreciable improvement in performance, despite an increase in the cost of the energy storage components, and above which the performance of the equipment is poor with the current being dominated by harmonics. The harmonic performance of the equipment is improved by using multiple inverters and phase shifting transformers to increase the pulse number. The optimum value of the resonance ratio increases pulse number, indicating a reduction in the energy storage components needed at high pulse numbers. The reactive power output from the compensator varies linearly with the reduced firing angle while the losses vary as the square of it