The significance of distribution loss allocation (LA) has increased since the deregulation of the energy market and the establishment of distributed generation (DG). This paper proposes a novel approach to the distribution of electricity in radial networks, focusing specifically on the operations of Local Authorities (LA). The proposed methodology comprises three distinct components, employing power flow analysis to incorporate active and reactive power flows on the transmission lines in Los Angeles (LA). The calculation of power loss involves the consideration of every node, starting with the source nodes that generate power beyond their capacity. Consequently, the power dissipation is distributed among the loads connected to each individual node. Based on the data obtained in the previous phase, the aggregate power loss is subsequently attributed to Distributed Generators (DGs). In contrast to the preceding phase, the current stage involves the allocation of power losses to nodes that are connected to sink nodes when the load surpasses the generation capacity. The final stage of the process is normalization. The proposed methodology was implemented and evaluated on two distribution feeders, and the obtained results were subsequently compared to those generated by established methodologies.