Whether the Reactive Power originates from the local or external grid, as well as whether it is caused by the energy supplier or the end user, it has a strong negative impact on the capacity and efficiency of electrical systems, resulting in losses and increased costs.

Phase imbalance in a three-phase system is a condition in which one or more of the voltages between the lines in the three-phase system are inconsistent. Three-phase energy systems and equipment are designed to operate in balanced phases, with voltages between phases usually varying by several volts, but a difference of more than 1% can be detrimental to motors and equipment.

Harmonics Pollution: The Silent Killer in the power grid is present in every electrical installation, and the greater it is, the greater the risks to the installation and equipment. In installations with a large number of non-linear loads included, the risk of high harmonic pollution is extremely high. Harmonics are also a cause of additional reactive energy.

For most electrical devices, the starting currents are significantly higher than the rated ones. Although these processes are short-lived, they can increase electricity costs for businesses. Depending on the tariff used, energy companies may charge a monthly fee based on the maximum energy consumption, not the nominal one. The excess can be up to 30% of the monthly electricity costs.

Transients that lead to short-term surpluses (usually several milliseconds) of currents and voltages relative to nominal values may be due to external and / or internal causes. Such causes can be lightning strikes, switching power substations, switching loads. Voltage changes as a result of transients can reach from a few volts to tens of kilovolts, while current surges can reach tens of Kiloamperes.

In power supply systems, the voltage may drop relative to the nominal value. This could lead to electric motors and other devices consuming currents exceeding the rated value, which can lead to their damage and reduced efficiency.