NERC orders TCN to slash transmission losses to 6.5%

The Nigerian Electricity Regulatory Commission (Nigerian Electricity Regulatory Commission) has directed the Transmission Company of Nigeria (Transmission Company of Nigeria) to reduce transmission losses across the national grid to not more than 6.5 per cent by December 2026.

The directive is contained in Order No. NERC/2026/026, published on the Commission’s official X handle.

The regulator said the new target is part of efforts to improve efficiency and stability in the Nigerian Electricity Supply Industry.

According to data from the Nigerian Independent System Operator (Nigerian Independent System Operator), transmission losses have recorded some improvement, falling from 8.71 per cent in 2024 to 7.24 per cent in 2025, a reduction of 1.47 percentage points.

However, the Commission noted that the current level remains above the 7 per cent benchmark set under the Multi-Year Tariff Order (MYTO).

The Order, dated 8 April 2026, introduces a framework for improved reporting of regional Transmission Loss Factors across the transmission network operated by TCN.

It stated that the directive takes effect from 13 April 2026 and is backed by provisions of the Electricity Act 2023, which empower NERC to regulate and ensure efficiency in the electricity market.

As part of the requirements, the Nigerian Independent System Operator is to install smart meters at all regional interconnection points by December 2026 to accurately measure energy flows.

It is also expected to measure and document energy flow at transmission substations and submit quarterly regional reports on transmission losses to the Commission.

The Transmission Company of Nigeria is required to submit an action plan by July 2026 outlining how it intends to reduce transmission losses to within the approved benchmarks.

NERC said the measures are aimed at strengthening accountability in transmission operations and improving overall grid performance.