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This paper presents allocation of energy losses to consumers connected to radial distribution networks in a deregulated environment. A detailed comparison of the proposed ldquoExact Methodrdquo with three alternative algorithms, namely, pro rata, quadratic allocation and proportional allocation are presented. Pro rata procedure is based on the load demand of each consumer, quadratic and proportional allocations are based on identifying the real and reactive parts of current in each branch and the losses are allocated to each consumer, and the proposed ldquoExact Methodrdquo is based on the actual contribution of real power loss by each consumer. A case study based on a 30-node distribution system is provided.