NERC Orders TCN to Reduce Transmission Losses by 2026

The Nigerian Electricity Regulatory Commission (NERC) has issued an order to the Transmission Company of Nigeria (TCN) to reduce transmission losses across the national grid to a maximum of 6.5% by December 31, 2026. This directive, dated April 8, 2026, is part of a new framework designed to enhance efficiency and transparency in the electricity transmission network.

The NERC emphasized that transmission losses, which represent energy dissipated during the conveyance of electricity, are influenced by various factors including equipment inefficiencies and operational practices. Recent data from the Nigerian Independent System Operator indicated that the national average transmission loss stood at 8.71% in 2024 and 7.24% in 2025, exceeding the approved benchmark of 7%.

To address this, the NERC has mandated the installation of smart meters at interconnection points by December 31, 2026, to accurately measure energy flow. Additionally, TCN is required to submit a comprehensive action plan by July 31, 2026, if it exceeds the allowed limit, with non-compliance attracting regulatory sanctions.