This paper presents an intelligent approach for managing reactive power from a group of distributed generators (DG) connected to low voltage (LV) bus. The objective is to minimize active power losses and keep the voltage profiles in the network within specified limit. This approach finds optimal DG reactive power and optimal tap changer position for main substation transformer every fifteen minutes. The effectiveness of the proposed approach is demonstrated in finding twelve DGs reactive power and optimal tap position in a test network. Optimization results shows that this approach manages to reduce power losses and at the same time keeping the voltages within required limit. Intelligent management approach presented in paper is suitable to be integrated into energy management scheme under smart grid concept.