A method is disclosed which makes use of an intelligent transfer algorithm for a UPS when the UPS is required to switch from a high efficiency mode of operation (VFD or VI) to an independent mode of operation (VFI), as a result of an under voltage condition occurring on the bypass line of the UPS. The method involves performing successive voltage measurements at a plurality of points during a first half cycle of an AC mains (Vout) signal to integrate the Vout signal until a zero crossing of the Vout signal is detected. Successive voltage measurements are used to detect the disruption of the Vout signal and a percentage of missing voltage area from the Vout signal during the disruption. The UPS then supplies a compensation voltage (Vcomp) which is added to the Vout signal to restore the Vout signal to a level at least approximately equal to a nominal AC mains voltage output signal (Voutnominal).