NERC orders new tracking for regional power transmission losses

By Imisioluwa Afunmiso

The NERC has issued a new directive mandating the structured reporting of Regional Transmission Loss Factors (TLF) in a bid to enhance transparency and operational efficiency in Nigeria’s power sector.

The directive, contained in Order No. NERC/2026/026 and dated April 8, 2026, establishes a formal framework for tracking and reporting transmission losses across regions managed by the (TCN).

According to data from the (NISO), the national average TLF dropped from 8.71 per cent in 2024 to 7.24 per cent in 2025. Despite this improvement, the figure remains above the 7 per cent benchmark approved by NERC under the (MYTO).

The Commission noted that the new Order, which takes effect from April 13, 2026, is backed by provisions of the , empowering it to regulate and ensure efficiency across the electricity market.

Under the directive, NISO is required to install smart meters at all regional interconnection boundary points by December 2026 to ensure accurate measurement of energy flows within the transmission network. It is also mandated to measure and document energy flows through power transformers at transmission substations and submit quarterly regional TLF reports to NERC.

In addition, TCN is to submit, by July 2026, a comprehensive action plan detailing measures to reduce transmission losses to within the approved 7 per cent benchmark across all regions. The company is further directed to ensure that regional TLF does not exceed 6.5 per cent by December 2026.

NERC stated that the Order is designed to strengthen accountability in transmission operations and improve overall grid performance through a more transparent and data-driven approach to loss monitoring.

The move is expected to support ongoing reforms in the power sector and enhance efficiency in electricity delivery nationwide.