To save cost born by consumers to the restriction of power factor and V10 required when receiving electric power from an electric power system.

In a reactive power adjusting system 100, a substation 1 is connected to a generator G via a transmission line 2 and connected to consumer loads L via distribution lines 3. The substation 1 is provided with a transformer 4, a controller 5, a voltmeter 6, a reactive power meter 7, a circuit breaker 8, and a var compensator 10. The circuit breaker 8 and a capacitor 9 are installed near the consumer loads L. The controller 5 determines whether the reactive power needs to be adjusted or not from the measured data of the voltmeter 6 and the reactive power meter 7 and instructs the circuit breaker 8 to close the circuit when necessary. The circuit breaker 8 connects a capacitor 9 or the var compensator 10 to the distribution lines 3 by closing the circuit in accordance with the instruction from the controller 5. The capacitor 9 is a power capacitor, which is cost effective and easy to maintain. The var compensator 10 is a static var compensator, which is capable of adjusting the reactive power continuously but expensive.