This paper describes a new and efficient method for quantifying and detection of the source of distortion caused by a single customer in a case when many other customers exist in a power grid. It is based on measuring distortion power, a component of apparent power that only exists with a nonlinear load. Different definitions for distortion power calculation are investigated. All these definitions show without doubt that the proposed method is feasible. Moreover, this method allows to develop fair and reliable billing schemes for controlling harmonic pollution. Measurement and simulation results confirm the effectiveness and applicability of the method. The proposed solution is suitable for software/hardware upgrade of existing electronic power-meters.