The position of a slide valve in a screw compressor in a refrigeration system is controlled using a gaseous medium sourced from the higher pressure of two or more sources of such fluid. Preferred sources are refrigerant gas in a closed compression pocket in the working chamber of the compressor and refrigerant gas in the discharge passage downstream of the compressor's discharge port. The multiple sources of such gas are connected to a solenoid valve which, when open, permits gas to act on the piston which controls the position of the slide valve. Due to a check valve arrangement, it is always the one of the sources of gas which is at higher pressure that acts on the slide valve actuating piston. The adverse affects of refrigerant gas out-gassing and gas bubble collapse associated with use of hydraulic fluid rather than a gaseous medium to modulate compressor capacity are avoided while advantageous use is made of compressor overcompression in the control of slide valve position.