This paper considers the use of the inherent structural characteristics of power system networks for improving the reactive power reserve margins for both topologically weak and strong networks. The inherent structural characteristics of the network are derived from the Schur complement of the partitioned Y-admittance matrix using circuit theory representations. Results show that topologically strong networks, operating close to the upper voltage limit could be made to increase their loadability margin by locating reactive power compensators close to generator sources, whereas topologically weak (ill conditioned) networks could be made to operate within the feasible operating limits by locating reactive power compensators on buses farther from generator sources.