The work developed a conceptual model of the process of managing the technological costs of electrical energy in 150-0.38kV distribution networks. The relevance and necessity of developing a conceptual model of the process of managing the technological costs of electricity, which is carried out in relation to the system of distribution of electrical energy (or the electrical distribution system) as a whole, including distribution electrical networks of 150-0.38 kV, is analyzed. The paper proposes a conceptual decomposition, considers the description and formalization of the power distribution system management process based on the criterion of reducing the technological costs of electricity. The proposed conceptual model describes the process of managing the technological costs of electricity in the power distribution system, as a process of regular improvement (optimization) of the functioning of the power distribution system and allows further optimization and automation of the process of managing the technological costs of electricity in the power distribution system, in order to achieve higher levels of energy efficiency of its functioning. It is shown that this model can be used to solve the tasks of not only strategic and tactical management (in terms of years and months) when forming development plans and current operation of distribution systems, but also operational optimization of technological costs of electricity at the pace of the process. Provided that the appropriate software is developed (including the forecasting of power distribution system modes and external environmental influences), the system for managing the technological costs of electrical energy is represented by three control loops that correspond to the stages of its development. Processes and information links between them are shown for each control loop. Each process in the conceptual model of the management of technological costs of electric energy has its own formal representation through generalized functional dependencies, and the information links between the processes correspond to the arguments and values of these functions. The conceptual model describes the process of managing the technological costs of electrical energy in the power distribution system as a process of regular improvement (optimization) of its functioning through increasing its energy efficiency.