NERC issues order on reporting regional electricity transmission loss factors

Business

ABUJA, Nigeria, 13 April 2026 (NPA) — The Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026 to strengthen transparency and efficiency in the country’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).

Data from the Nigerian Independent System Operator (NISO) show that the national average TLF dropped from 8.71% in 2024 to 7.24% in 2025, but still exceeds the 7% benchmark approved by NERC under the Multi-Year Tariff Order (MYTO). The new Order, dated 8 April 2026, establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).

Effective from 13 April 2026, the directive is backed by the Electricity Act 2023, which empowers NERC to regulate, monitor, and ensure efficiency in the electricity market. Key provisions include:

Advertisement

• NISO to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows.
• NISO to measure and document all energy flow of power transformers at transmission substations.
• NISO to file quarterly regional TLF reports to NERC.
• TCN to submit an action plan by July 2026 to reduce TLF to within the 7% benchmark.
• TCN to ensure TLF across transmission regions does not exceed 6.5% by December 2026.

NERC stated that the Order is designed to strengthen accountability in transmission operations and support improved grid performance through structured loss reporting.