Reactive Power Compensation is becoming increasingly important, as more and more conventional generation is replaced by dispersed energy sources, which do not contribute to voltage stability in the transmission grid. The Mechanically Switched Capacitors with Damping Network (MSCDN) is a costefficient solution, combining reactive power compensation and harmonic mitigation. In this paper, the MSCDN is analysed with respect to its design parameters to determine the electrical stress on the components during energization. The analysis is done in Laplace and frequency domain, as well as through time-domain numeric simulation.