With the prospect of an increasing number of electric vehicles (EVs) on the road, domestic charging will be the most obvious way to recharge the vehicles’ batteries. However, this can have adverse impacts to low voltage (LV) distribution grids such as high current demand, increased 3-phase load unbalance and subsequently higher energy losses. In order to investigate to what extent existing infrastructures can support a gradual introduction of EVs at the residential level and what are the possibilities for distribution energy loss reduction, a complete model of a LV grid was developed. By simulating the interaction of EV users with electricity distribution networks, an insight was created into the energy saving potential but also into the possible barriers that might arise in the short term future. Simulation results show that if the charging process of the EVs’ batteries is left uncontrolled, the introduction of EVs will have a negative impact on distribution systems in terms of overloaded circuits and increased energy loss. Nevertheless, the concept of electric transportation can provide the means to optimise the use of the distribution grid’s capacity and to minimize energy loss. By controlling the charging process of the vehicles’ batteries, the potential energy savings can be significant. Furthermore, EV technology can play an important role in releasing the distribution system’s capacity and improving system reliability.