Summary Voltage and current imbalance have adverse impacts on power systems such as power loss increase, communication interference, and component lifetime reduction. This paper attempts to look at unbalance impacts from distribution system operator's (DSO) viewpoint in order to understand them and then mitigate the impacts. Since solving the unbalance conditions is influenced by the way the imbalance is defined, standard unbalance indexes are studied, and new indexes are proposed in this paper. Re‐phasing of the customers is selected to reduce the level of unbalance in distribution feeders. Due to the huge number of customers, a wide variety of choices can be selected for re‐phasing of customers, which makes the solution questionable. Therefore, discrete genetic algorithm (DGA) as a metaheuristic method has been utilized in order to distribute customers among the network phases optimally considering the fact that DSO has a limitation for the re‐phasing practice. The aim is to reduce the unbalance indexes and power losses throughout the network. Simulations have been carried out on a real test case network, which shows the importance of load balancing and its effects on the power losses, voltage profile, and current flow in that network. The effectiveness of the proposed indexes has also been demonstrated for the four‐wire multigrounded distribution system. Since re‐phasing of the majority of customers in distribution networks seems impractical, a re‐phasing limitation is also investigated in this paper, and some practical suggestions of optimal load balancing in a real‐world low‐voltage distribution system have been presented here. Results show the importance of load balancing in power loss reduction and voltage unbalance improvement in the low‐voltage four‐wire multigrounded distribution system. They also illustrate that by changing phases of a few customers, power losses and unbalance indexes will be improved significantly.

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