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This paper presents a new indirect current control technique based on the instantaneous active current applied to shunt hybrid power filters (SHPF) to compensate harmonics and the reactive power of a nonlinear load. This method uses a residual signal constructed from the comparison between the supply currents and their desired values. To evaluate its performance, this method is compared to the direct current control technique based on the synchronous frame method. The switch patterns are greatly reduced. The ripples in the supply currents shapes are eliminated and the proportional gain Kp is automatically set. While its determination is a hard task using direct methods. A three-phase current controlled voltage source inverter feeds the primary windings of the transformer. The SHPF damps the resonant frequency created by source inductance and power factor correction capacitors to a noncritical value. Simulation results using Power System Blockset Toolbox PSB of Matlab show the performance of the proposed control algorithm with a reduced switch AF circuit and its capability to compensate for harmonics and reactive power.