Transmission lines are equally as important as power generation plants for developing the energy sector of any country. In the case of electricity transmission system, economic efficiency implies promoting an optimal utilization of existing network, placing of new generations and promoting addition of loads where the maximum efficiency is envisaged and promoting transmission investments. These characteristics require that the transmission networks that pertain to each transaction must be identified and their costs properly allocated among users based on ARR (Annual Revenue Requirement). In case of developing countries like Nepal where the energy resources are yet to be utilized and huge investments are attracted to build the infrastructures for energy sectors, inviting ample investments and the cost recovery of transmission line becomes challenging. In order to evaluate the wheeling charge of the transmission line, various methodologies have been adapted in different countries. In this view tracing the flow of electricity has gain significance as its solution helps in evaluating fair and transparent tariff. Electricity tracing methods would make it possible to charge the consumers and/or generators on the base of actual transmission capacity used. This paper focuses on electricity tracing using Bialek‟s tracing algorithm. Case study carried out using an IEEE 14-bus with additional two bus to replicate the radial network of a transmission system.