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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”. Based on the above problems, a comprehensive study is required to help the electricity company to reach interoperability of their electricity distribution system. The method used in this research is System Dynamics Simulation, based on consideration that this framework enables us to analyse systems and to conduct performance trade-offs of alternative “what-if?” options. The model output can be used as a direction in making decisions. Research results show that technical losses can be reduced through some scenarios such as Medium Voltage Network's cross sectional area replacement, which will also affect the Low Voltage Network and Household Connection and increasing power factor (Cos φ). Meanwhile, nontechnical losses can be reduced by inspection and Automatic Meter Reading (AMR) usage.