A new method for energy loss reduction for distribution networks is presented. It is based on known techniques and algorithms for radial network analysis - oriented element ordering, power summation method for power now, statistical representation of load variations, and a recently developed energy summation method for computation of energy losses. These methods, combined with the heuristic rules developed to lead the iterative process, make the energy loss minimization method effective, robust and fast. It presents an alternative to the power minimization methods for operation and planning purposes.