This paper proposes an efficient method for solving shunt capacitors sizing problem in radial distribution feeders. For this typical multi-objective optimisation problem, the optimal number, sizes and locations of fixed shunt capacitors are determined using a sensitivity-based heuristic solution. In this method, based on Markov chains, the number of variables to be optimised is reduced by using the node sensitivities to locate capacitors. Only a limited number of critical nodes satisfy the problem constraints and are considered for receiving standard shunt capacitors that maximise a net saving function. In order to overcome any over-compensation. the voltage admissible limits, imposed by many authors, are substituted by a new constraint on the branch reactive currents. To demonstrate the effectiveness and feasibility of the proposed approach, comparative studies were conducted on several test systems. The results we got were promising compared to those given by previous published techniques. (C) 2009 Elsevier Ltd. All rights reserved.