State estimation plays a vital role in the security analysis of a power system. The weighted least squares method is one of the conventional techniques used to estimate the unknown state vector of the power system. The existence of bad data can distort the reliability of the estimated state vector. A new algorithm based on the technique of quality control charts is developed in this paper for detection of bad data. The IEEE 6-bus power system data are utilised for the implementation of the proposed algorithm. The output of the study shows that this method is practically applicable for the separation of bad data in the problem of power system state estimation.