This article deals with the influence of distributed generation (DG) on distribution line losses with respect to voltage profile. The article focuses on the development of a control strategy to minimize the grid losses and assure fairness regarding reactive power contributions. As retail customers typically have no choice where they are located along a feeder, it seems unfair that only some of them bear all the burden and responsibility for the voltage rise. On the basis of new technologies, which are capable of fast communication and data processing, a new control system has been proposed that combines classical centralized and local control. The heart of the control system is a load-flow algorithm, which estimates the voltage drop using a modeled network. Different control solutions were evaluated by means of computer simulations. The simulated network is an actual Slovenian medium-voltage distribution network which covers a large area with diverse feeders and thus gives relatively general results.