The reliability of electricity distribution systems plays an important role to guarantee the sustainability of electrical power supply to consumer. The main reason why we should sustain the electrical power supply is to reduce “blackout”. This blackout will result a domino effect to work or other related matters. It is therefore in this research, we developed a System Dynamics simulation model to simulate the behavior of electricity distribution network. This research provides insights to National State Electricity Company in achieving interoperability of electrical distribution network. We developed a set of model which has the ability to detect electricity distribution losses based on existing condition and several scenarios to reduce technical losses in medium and low voltage networks.