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A digital method of analysing harmonics in a power system has been developed which permits the equivalent network impedance to be estimated by means of the switching of capacitor banks. The method records voltage and current digitally and by data processing computes the amplitude and phase of the harmonics. By comparing results before and after the switching of a capacitor bank on one phase, the equivalent network impedance is estimated at the odd harmonics. Precision of results is acceptable in amplitude but less accurate in phase.