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Recently, allocations of transmission losses have become a major issue in both regulated and deregulated systems. Two main reasons for this are performance and cost issues. Consequently, there have been a large number of investigations undertaken in the area of transmission loss allocation. The aims of this paper are to investigate several loss allocation methods and then choose the best method, or at least the most appropriate and reasonable method. These investigated methods encompass a wide variety of techniques ranging from the classical (Pro-rata and incremental methods) to the newest methods, proportional sharing and Z-bus. The crucial issues of loss allocation are how to measure it precisely and then decide which method is most transparent and perceived to be fair for all parties. In this paper we will firstly developed criteria to categorize loss allocation methods into several groups and then a method will be chosen as a representative of each group. Then, a real network, namely Java-Bali 500 KV grid system, the largest interconnection system in Indonesia, will be used as a case study and each method will be tested under the same loading conditions tested, hi the case studies the losses will be allocated to each load and generator. Based on these simulation results, the results of each method will be compared and the best method will be chosen according to the criteria derived.