Hybrid reactive power compensation (HRPC) consists of a stepped controlled shunt reactor (SCSR) and a series compensation (SC), which will find applications in future ultra high-voltage (UHV) power grids to resolve the problems due to the frequent change of reactive power and bulk power transmission. However, very fast transient currents (VFTCs) are inevitably generated during switching, which would lead to insulation breakdown. In the present work, we first develop the equivalent model for HRPC, following which we deduce the expression of VFTCs in the time domain by using an inverse Laplace transform. The analysis indicates that the amplitude and frequency of VFTCs are both affected by the capacitance of the SCSR and of the SC, as well as the line length, stray capacitance, etc. The oscillating frequency, peak, and amplitude of the main frequency of the VFTCs in the substation can be modified by adjusting the silicon-controlled rectifiers in the SCSR when the disconnecting switch in gas-insulated switchgear is switched on. When the disconnecting switch in the SC is switched on, the VFTC oscillation frequency in SCSR decreases with increasing stray capacitance of SC, but the frequency and peak of the VFTC remains quite large. Increasing the line length between the SC and the SCSR suppresses the VFTC in UHV power systems. These results lay the foundation for developing HRPC methods to suppress VFTCs in UHV substations.