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This study proposes a multi-objective fuzzy-based procedure for solving reactive power management in competitive environment. The proposed procedure incorporates both economical and technical aspects of reactive power support. The economical aspect aims to minimise the total costs of reactive power purchase from service providers as primary objective function, whereas the technical aspect is taken care of through the secondary objective function that minimises the total transmission losses. The proposed procedure achieves security constraints such as the bus voltage limits, reactive power capability limits and transmission line reactive transfer limits. The proposed procedure is applied to the west-delta region system as a part of the Egyptian Unified network. The numerical results show that the proposed procedure achieves a minimum real power loss with maximal reactive reserve for power systems for different operating conditions.