Abstract. The article presents a new approach towards reducing an overall cost of electric power network with maintaining its reliability. Goals are achieved by implementing an ant colony algorithm with a cut-set method as a method for reliability evaluation. The algorithm solves the problem of multi-objective optimisation, where both the network cost and network reliability index, known as unavailability, should be minimalised. The network cost is considered as a linear function of overall length of network's connections. For reliability evaluation in the cut-set method, real empiric data of hazard rate for overhead power lines are used. Parallel-series network structure, equivalent by means of reliability to analysed network, is generated through the cut-set method to compute unavailability of trial solutions. Sections of the structure are generated on the basis of minimum cut set, found by the algorithm for finding one-and two-minimum cuts. As used algorithm for finding minimum cuts has linear complexity, the evaluation of trial solutions is computationally effective. An example, presented in this article, provides figure of optimal network configurations found by the algorithm.