Model is a representation of a system. Through model, it can be easier to forecast and control the changing of eachelement system. Electricity distribution is also a system. Losses are general problem that exist in a distribution networksystem. But with the right methods, specifically technical energy losses can be reduced in order to increase theefficiency. By making model of the distribution network, the value of technical energy losses in the whole network aswell as in every line can be observed. Simulation can also be used to see all losses reduction alternatives. By comparingresults from each alternatives, the best alternative, which gives best result can be decided and implemented.