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Deregulation in electricity industry necessitates wide access to transmission networks that connect consumers and suppliers. As congestion in the transmission networks is a key obstacle to vibrant competitive electricity markets Thus; one of the most challenging problems for a deregulated power environment is how to handle the transmission congestion. The main objective of the transmission congestion management is to appropriate what portion of the capacity of a particular transmission system is used by a certain transaction. This paper introduces a scheme for allocation of the transmission congestion charges which is based on deriving a radial network that is fully equivalent to the original one. Once this equivalent network is available, the allocation of the transmission congestion charges to generators and demands can be performed in a simplified way.