One of the most important parts in the electric power system is the distribution system as it connects transmission networks with their end users – customers. Due to constant technological and industrial development there has been a significant increase in electricity demand. Therefore, the distribution systems have become more complex which requires frequent improvements in the reliability of distribution systems. Some of the main distribution system problems include: the minimization of total losses in the distribution network, equalization of voltage profiles along MV terminals, equalization of load per terminals and increasing reliability of power supply. To minimize these problems it is essential to plan the structure of the distribution network. There have been developed various reconfiguration methods aiming to reduce overall system losses, equalize voltage profiles, load, and increase reliability. Distribution system reconfiguration consists of changing the distribution network topology in order to find the most optimal topology. This paper covers optimization methods, the proposed model of SN 10 kV network for the real area processed with DigSilent Powerfactory software package and complete analysis of power flows, voltage conditions, loads and power reliability for the existing network switching condition. By using the DM topology optimization module, the optimal network switching condition was determined regarding a certain target function. The obtained results are presented and thoroughly analyzed.