TCN gets NERC’s December deadline on transmission losses

NERC said the transmission losses in the Nigerian Electricity Supply Industry (NESI) reduced by 1.47 per cent in one year.

Citing data from the Nigerian System Operator (NISO), NERC said from the Transmission Load Factor (TLF) was 8.71per cent in 2024 but was reduced to 7.24per cent in 2025.

The order said: “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).

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“Data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71per cent in 2024 but was reduced to 7.24per cent in 2025.”

NERC further said however, this still exceeds the seven per cent benchmark approved by NERC in the Multi Year Tariff Order (MYTO).

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

The order reads in part: “Taking effect from 13 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.

Highlights and timelines in the Order include: “NISO to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows for each region of the transmission network. NISO to measure and document all energy flow of power transformers at transmission substations; NISO to file quarterly reports on TLF to NERC on a regional basis; TCN to file an action plan by July 2026 on the reduction of TLF to a value within the seven per cent approved benchmarks in the regions.

“The Order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.”