An innovative methodology for harmonic voltage identification has been introduced, leveraging the application of a multivariable-filter (FMV) to the three-level unified power quality conditioner (UPQC). The UPQC is controlled using a feedback linearization method founded on the space vector modulation (SVM) approach. The main attributes of this novel technique are its simplicity, robustness, and ease of implementation. It necessitates only a Concordia transformation block and an FMV filter. To enhance the performance of the UPQC system, this technique is incorporated into the control strategy. This integration considers an energy minimization based balancing of DC capacitor voltages. A prime advantage of this methodology is the provision of compensation signals with impeccable accuracy and typical speed. This is achievable under a myriad of load conditions, enabling the elimination of current and voltage harmonics while maintaining a high dynamic response. Validation of the proposed method's performance is achieved through MATLAB/Simulink simulations, applied to a diverse nonlinear load. When contrasted with results obtained from the conventional PQ-theory, these simulations demonstrate the superior effectiveness of this newly proposed identification technique.