Abstract:In this paper the most frequently used power quality indices are reviewed, and an hybrid algorithm for power quality index determination is proposed. The algorithm is based on the wavelet transform and is not limited to stationary waveforms. The wavelet transform is used to detect, classify the signals and to calculate the Total Harmonic Distortion (THD). In cases where the wavelet transform is not applicable, its detection capability allows to identify the signals and the choice of another index is done to calculate the harmonic distortion. Advantages of the new index are highlighted and its performance is compared with the traditional set of indices.