NERC Orders Transparency in Reporting Regional Electricity Transmission Loss Factor

The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to ensure transparency in reporting the Regional Electricity Transmission Loss Factor.

In a public notice posted on its official X handle on Monday, the order, contained in No. NERC/2026/026 is aimed at improving transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).

NERC disclosed that the order is backed by the provisions of the Electricity Act 2023, which enables the commission to regulate, monitor, and ensure efficiency in the power sector.

According to the statement, the Data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71% in 2024 but was reduced to 7.24% in 2025.

The statement added that the report exceeds the 7% benchmark approved by NERC in the Multi-Year Tariff Order (MYTO).

The statement reads, “The Order dated 8 April 2026 establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).

“Taking effect from 13 April 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.”

The notice contains directives issued to NISO and TCNs.

The directive reads, “NISO to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows for each region of the transmission network.

“NISO to measure and document all energy flow of power transformers at transmission substations.

“NISO to file quarterly reports on TLF to NERC on a regional basis.”

It added, “TCN to file an action plan by July 2026 on the reduction of TLF to a value within the 7% approved benchmarks in the regions.

“TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026.”

NERC concluded that the order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.