The residential sector in Nablus - Palestine represent 48% of the total electric power consumption while the power losses in it amount to 8.1%. Implementing of a project aiming at energy conservation in households which included wide range of diversified power measurements, had led to creating this paper. Measurement results, had shown that power losses in the residential sector are mainly caused due to low power factor of the household - loads varying in the range: 0.55 - 0.75 . After developing a proper mathematical model representing the power losses in the residential sector, which represents a main load to the low voltage distribution network in Ch.4, evaluation of measuring results show that an energy saving of 53.18%, by improving the power factor in the households to 0.95, is possible. This percentage corresponds to 3242430 kwh / year or to money saving of 353035 US $ / year. This result is not only applicable for Nablus electrical network but also for other Palestinian cities where similar conditions are prevailing.