A conventional three-phase electric arc furnace causes flicker at the point of common coupling with AC mains. This generally occurs with AC mains having a low short-circuit capacity. The flicker is caused by flucluating reactive power consumption of the furnace. This paper describes a way, through computer simulation, of increasing the dynamic performance of the furnace and keeping reactive power consumption constant. This can be achieved with the addition of a three-phase power controller and a booster transformer to the power source and the introduction of a new control method of regulating the reactive power input. The problem of flicker can thus be minimized. This was experimentally tested on a single-phase model and the results obtained were very satisfying. Due to laboratory facilities, the three-phase testing was not performed.