Compensating chokes are intended for compensating capacitive reactive power; this ensures higher energy efficiency. They are used in long cable networks with insufficient load. Both single-phase and three-phase chokes are used, depending on a system. When properly installed in a designed electrical system they increase energy efficiency and reduce costs generated by capacitive reactive power. Capacitive reactive power compensation is necessary. Transportation of reactive energy from a generator, through electrical grid and transferring equipment, to receivers in low-voltage grid is highly disadvantageous.

In such cases, a permanently fixed compensating choke is the most cost- and labour-effective solution for an energy receiver.