Abstract This paper describes specific issues of reactive (Q) power management. One proposes to enhance the concept of Q-power management to make it more energy-efficiency oriented and to stimulate cost-effective response from end users. Such Q-management shall embrace energy efficiency optimisation on supply and demand sides and become an element of DSM programs to create price signals for investment in Q-management equipment. The current attempts to stimulate the optimal Q-power management are not effective. The present Q-power tariff does not encourage investments in Q-power resources. The methods practically applied in large power systems for estimation of active power losses caused by Q-power are not suitable for energy auditors. The means of Q-power management affecting end users have been divided into reactive and active. At present, reactive means prevail mainly as penalties (e.g. tariffs) or seldom as rewards (e.g. grant programs). The active means will evolve to realise full potential of Q-management. Nowadays, active Q-management as ancillary services mainly embraces generation and transmission although in the future these services may be delivered by a larger circle of end users. This process should be supported by energy market regulations concerning Q-power tariff.