Penalty options for over-compensated reactive energy at medium and small customers level

Reactive power circulation in distribution networks represents a major source for the technological consumption, component of a larger package of performance indices of distribution operators. Tackling the compensation issue, given the current co-existence of various perturbation requires good knowledge of phenomena and this paper tries to summarise authors experience in the field. A discussion upon a potential mathematical model together with a possible algorithm for the assessment and monitoring of over-compensation is provided, giving an insight view on the issue of reactive compensation, which is also presented in the paper.