Automatic Power Factor Correction equipment is applied in industry to ensure that the electrical distribution system is utilised to its best capacity. Normally, such power factor correction is done by way of monitoring load PF and switching capacitor banks. But it is well known that such capacitor based automatic power factor correction are slow to react to load PF changes resulting in either over or under compensation. Also, due to today’s harmonic rich environment, capacitors suffer from overloads, system resonance, capacitor leaks, contactor failures, reduced life expectancy and real fire risk. Live Line SVG is an entirely new approach to power factor correction. The SVG utilises a high speed three level inverter that reacts to changes in reactive power, exchanging corrective reactive power into the system. Full correction is made in 3/4 of a cycle. This rapid response provides stable accurate real-time power factor correction without the drawbacks of traditional capacitor-based systems. The SVG can continuously adjust reactive power dynamically and bi-directionally (leading or lagging). There is no chance of system resonance and even under low voltage conditions will be provided by SVG.