This paper describes a new approach to the evaluation of loss adjustment factors for distribution systems. Such factors are required for 'use of system' and wheeling calculations and reflect the amount by which purchases of energy at entry points to the system must exceed consumption at the point of use to account for the losses which occur in between. Renewed interest in cost-reflective methods of charging for losses has resulted from the deregulation of the electricity supply industry in many parts of the world. An algorithm is described which combines the use of graph theory with readily available loadflow results, to assign the losses in each line or transformer within the system to the consumers supplied by it, The resulting allocation is shown to account for the voltage level, location and consumption pattern of the consumer in a may which is economically efficient, A variety of strategies for apportioning losses between multiple consumers at a given location can be implemented. The algorithm is suitable for allocating both demand and energy losses. Results on a full size distribution network are presented, and are compared with traditional published loss adjustment factors.
