Calculation of transmission loss factor considering load variation

In Korea, the Government divided the generation part of the existing vertically integrated power company into six subsidiary companies. In the near future, full competition in power supply business will be introduced. Allocating additional cost for power supply is controversial, so the problems of fairness will arise between market players. Cost involved in transmission loss is one of such costs and in this paper, several methods for allocating transmission loss cost is reviewed and the transmission loss factor (TLF) method considering load variation is suggested.