NERC issues order on reporting regional electricity transmission loss factor

The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026 to improve transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).

The Order, dated 8th April, 2026, establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).

Expected to take effect from 13th April 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.

According to NISO, data revealed that in 2024, the national average TLF was 8.71% and in 2025 was reduced to 7.24%, but despite this, it (TLF) still surpassed the 7% benchmark approved by NERC in the Multi-Year Tariff Order (MYTO).

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The Order, designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting, aimed to ensure that NISO installs smart meters at all boundary regional interconnection points by December 2026, thereby accurately measuring energy flows for each region of the transmission network.

NISO is also expected to measure and document all energy flow of power transformers at transmission substations, as well as file quarterly reports on TLF to NERC on a regional basis.

For TCN, the goal is to file an action plan by July 2026 to reduce TLF to a value within the 7% approved benchmarks in the regions, and also to ensure that TLF across transmission regions does not exceed 6.5% by December 2026.