The Nigerian Electricity Regulatory Commission (NERC) has introduced new regulatory measures aimed at reducing electricity transmission losses and improving grid efficiency across the country.
The commission says the new framework is designed to strengthen accountability in the power sector and ensure more efficient delivery of electricity from generation companies to distribution companies. It also forms part of ongoing reforms under the Electricity Act 2023 to stabilise the national grid.
One of the key provisions includes stricter monitoring of the Transmission Loss Factor (TLF), which determines the allowable energy losses during power transmission. NERC has been gradually tightening this benchmark over a multi-year trajectory to push operators toward higher efficiency levels.
Under the reform plan, transmission loss targets are being reduced progressively to encourage better infrastructure management, improved maintenance, and reduced technical losses across the grid. The regulator also emphasised the need for enhanced real-time monitoring systems to detect faults and reduce system disturbances.
NERC further stated that the reforms will support ongoing efforts by the Nigerian Independent System Operator (NISO) and the Transmission Company of Nigeria (TCN) to modernise the grid and improve reliability for consumers nationwide.
The move comes amid long-standing challenges in Nigeria’s electricity sector, where technical, commercial, and transmission inefficiencies have continued to affect power supply stability and overall service delivery.
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