Executive Summary
The Nigerian Electricity Regulatory Commission (NERC) has directed the Transmission Company of Nigeria (TCN) to reduce regional transmission losses to a maximum of 6.5% by the end of 2026. This directive, formalized under Order No. NERC/2026/026 and backed by the Electricity Act 2023, aims to enhance transparency, accountability, and grid efficiency within the Nigerian Electricity Supply Industry. The order introduces a structured framework for reporting transmission loss factors across TCN-operated regions. NISO is mandated to install smart meters at all regional interconnection points by December 2026 for accurate energy flow measurement and quarterly reporting to NERC. NISO Managing Director Abdu Mohammed Bello stated that the sector had been losing between five billion and eight billion naira monthly due to high losses.
- NERC mandates TCN to reduce electricity transmission losses to 6.5% by 2026, aiming for grid efficiency and financial savings.
What Is Driving The Story?
- High electricity transmission losses.
- Need for improved grid efficiency.