NERC Introduces New Rules to Reduce Electricity Losses

The Nigerian Electricity Regulatory Commission (NERC) has issued new regulations to address electricity transmission losses in Nigeria. The order, numbered NERC 2026 026, aims to establish a strengthened framework for reporting and monitoring regional transmission loss factors across the country's electricity transmission network.

According to data from the Nigerian Independent System Operator (NISO), the national average transmission loss factor is currently 8.71%, with a projected decrease to 7.24% by 2025. However, these figures remain above the 7% benchmark set by the Multi-Year Tariff Order (MYTO) dated April 8, 2026, which will take effect on April 13, 2026.

The new regulations require NISO to install smart meters at regional interconnection boundary points by December 2026 to ensure accurate energy flow measurements. Additionally, transmission companies must submit action plans by July 2026 to reduce losses within the approved benchmark.

The overarching goal is to enhance transparency and improve the management of transmission losses across Nigeria's electricity grid.