NERC introduces new transmission loss rules, sets 6.5% target

NERC introduces new regulations to reduce electricity transmission losses across Nigeria's national grid, issuing Order No. NERC/2026/026 effective April 13, 2026. The new framework aims to bring transmission losses down from current 7.24% to below 6.5% by December 2026, backed by provisions of the Electricity Act 2023.

Nigerian Independent System Operator (NISO) has been mandated to install smart meters at all regional interconnection boundary points by December 2026 to enable accurate energy flow tracking. NISO will also measure energy at transmission substations and submit quarterly loss reports to NERC.

Transmission Company of Nigeria (TCN) must submit a comprehensive action plan by July 2026 detailing measures to reduce transmission losses. NERC states the initiative will improve transparency, strengthen monitoring systems, enhance operational efficiency, and support better planning and fair pricing in Nigeria's electricity market.

How might these transmission loss reduction measures affect electricity tariffs in your region, and should consumers prepare for potential price adjustments as efficiency improvements are implemented?

SOURCE: https://dailypost.ng/2026/04/13/nerc-introduces-new-rules-to-reduce-electricity-transmission-losses/