The paper proposes a simple method to calculate the portion of real power losses of transmission lines allocated to individual loads. The method is implemented by defining loss distribution factors, and analyses the loads shares in the transmission line losses. The paper also performs calculation of sensitivities of the line losses with respect to load changes so as to be easily employed in on-line applications. Effectiveness of the algorithm is verified by computer simulations and it is estimated that the results can be used to compute the cost of one ancillary service under deregulated environment in electric power industries.