NERC Unveils New Rules To Cut Power Losses, Boost Grid Transparency

The Nigerian Electricity Regulatory Commission (NERC) has introduced a new set of regulations aimed at reducing electricity transmission losses and improving transparency across Nigeria’s national grid.

Under Order No. NERC/2026/026, the commission established a strengthened framework for monitoring and reporting Regional Transmission Loss Factors within the country’s power transmission network. The directive was part of broader efforts to enhance efficiency and accountability in the sector.

According to data from the Nigerian Independent System Operator (NISO), the national average transmission loss factor declined from 8.71 per cent in 2024 to 7.24 per cent in 2025. Despite the improvement, the figure still exceeded the 7 per cent benchmark set under the Multi-Year Tariff Order.

The order, issued on April 8, 2026, and effective from April 13, 2026, is backed by provisions of the Electricity Act 2023, which empowers NERC to regulate efficiency and ensure accountability in the electricity market.

As part of the new requirements, NISO is mandated to install smart meters at all regional interconnection boundary points by December 2026 to enable accurate tracking of energy flows. It is also expected to measure and document energy flow at transmission substations and submit quarterly reports on regional transmission losses to the regulator.

Meanwhile, the Transmission Company of Nigeria (TCN) has been directed to submit a comprehensive action plan by July 2026 outlining measures to reduce transmission losses. The company is expected to ensure that losses across all regions do not exceed 6.5 per cent by December 2026.

NERC stated that the initiative was designed to improve transparency, strengthen monitoring systems, and enhance operational efficiency across the grid.

The commission added that accurate reporting of transmission losses will support better planning, infrastructure management, and fair pricing within Nigeria’s electricity market.