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Increased ratio error of capacitor voltage transformers (CVTs) has been recently encountered in several substations in Iran. The results of the performed diagnostic tests indicate that short-circuited capacitor elements, especially in the low-voltage capacitor, have increased the CVT error. In this paper, some simple and effective techniques are suggested to solve this problem. One of the proposed methods to compensate the increased error is utilization of an auxiliary voltage transformer (AVT), which does not require disassembling the CVT. The practical aspects of this method, its effects on the CVT transient response, and the influence of the AVT improper design on the performance of distance relay are scrutinized in this paper. Furthermore, the design requirements of the AVT to avoid distance relay malfunctions due to the AVT ferroresonance are discussed. [ABSTRACT FROM AUTHOR]