NERC cuts regional transmission loss target from 7.24% to 7%

Determined to continually improve transparency and efficiency in the country’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF), the Nigerian Electricity Regulatory Commission (NERC) has issued Order No. NERC/2026/026, which reduces the regional TLC operated by the Transmission Company of Nigeria (TCN) from 7.24 per cent in 2025 to align with the seven per cent benchmark under the Multi-Year Tariff Order (MYTO), with a further target of lowering it further to 6.5 per cent by December 2026.

The directive was contained in a public notice accompanying the Commission’s Order on reporting regional electricity transmission loss factors dated April 9, 2026.

Data from the Nigerian Independent System Operator (NISO) showed the national average TLF declined from 8.71 per cent in 2024 to 7.24 per cent in 2025, which still remains above the seven per cent multi year tariff order (MYTO) benchmark, prompting the establishment of a formal reporting framework effective yesterday under the Electricity Act 2023.

The Commission also issued directives for NISO to install smart meters at regional boundaries, measure and document transformer energy flows and file quarterly reports. The TCN is also expected to submit a loss-reduction action plan later in July and ensure compliance with a 6.5 per cent cap by year-end.

“NISO to file quarterly reports on TLF to NERC on a regional basis TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026,” NERC said in the statement.