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- The magnitude and phase of the compensating voltage in Dynamic Voltage Restorer (DVR) system depend on the voltage sag in the phases affected by the fault and on the influence of the zero sequence components. If the delta connection of the transformer is used, the zero sequence components do not appear on the load side. But nowadays, Y connected transformers with grounded neutral, that is 3-phase 4-wire system, are usually used. Therefore the zero-sequence components are occurred during faults. The zero-sequence components result in the high insulation costs and the asymmetry of the phase and magnitude of the terminal voltages. In this paper 3 phase 4 wire distribution system and 3 phase 3 wire system are analyzed and characteristics of voltage sag are presented. And this paper proposes the method that can mitigate the zero-sequence under the unbalance faults causing voltage sags and phase angle jumps.