The existing system has some serious disadvantages. You cannot have ideal compensation to reactive power as because of the steps only a near about compensation to Power Factor is available. The System will always be over compensated or under compensated. There exists a fear of over improvement and a name is given to this as ‘power factor correction better than 0.9’. With combination of increments in sizeable capacitor steps, and abrupt full current switching, over improvement could cause over voltages of as much as 40 % on affected power lines and subsequent damage to motor driven equipment under certain conditions of operation.