• loss allocation;
  • loss cost;
  • loss cost allocation;
  • tracing;
  • transmission networks


As a high proportion of the total generated electricity energy and the power system costs is due to the power losses in lines, allocating the loss and associated cost to the system loads and generating units is a substantial issue in deregulated power systems. The procedure to accomplish this cost allocation is designated as ‘loss cost allocation’ (LCA). So far, a number of LCA methods have been proposed for transmission networks. A few papers have compared different loss allocation methods, which are the methods which calculate the loss (and not necessarily the loss cost) allocated to the loads and generating units. However, this paper presents a comparative study of LCA methods. In this paper, the existing LCA methods are compared from different aspects. The comparison is made by implementing these methods on the IEEE-RTS, and the results will be discussed. Copyright © 2012 John Wiley & Sons, Ltd.