NERC Directs TCN to Cut Transmission Losses to 6.5% by December 2026
The Nigerian Electricity Regulatory Commission (NERC) has directed the Transmission Company of Nigeria (TCN) to reduce transmission losses to 6.5 percent by December 2026, in a renewed push to improve efficiency in Nigeria’s power sector.
Regulator Targets Efficiency Gains
The directive forms part of NERC’s broader strategy to strengthen the electricity value chain in Nigeria, where transmission losses have long contributed to unstable power supply and inefficiencies.
Transmission losses occur when electricity generated is not fully delivered to distribution companies due to technical issues such as outdated infrastructure, energy dissipation, and grid constraints.
Benchmark for Performance Improvement
By setting a 6.5 percent target, NERC aims to compel TCN to enhance operational performance and align with global best practices in electricity transmission.
Industry experts note that reducing transmission losses would:
- Improve overall grid efficiency
- Increase available power for consumers
- Reduce wastage in the system
- Enhance revenue across the electricity value chain
Challenges Facing the Transmission Network
The directive comes amid longstanding challenges in Nigeria’s transmission network, including:
- Aging and inadequate infrastructure
- Frequent grid collapses
- Limited capacity to evacuate generated power
- Funding constraints for upgrades
Analysts say achieving the 6.5 percent target will require significant investment in infrastructure, including modern transmission lines, substations, and smart grid technologies.
Implications for Power Supply
A reduction in transmission losses is expected to positively impact electricity supply nationwide by ensuring that more generated power reaches distribution companies and, ultimately, end-users.
This could translate into:
- Improved power availability
- Reduced outages
- Better service delivery
Regulatory Oversight and Compliance
NERC is expected to closely monitor TCN’s progress, with periodic assessments to ensure compliance with the directive.
Failure to meet the target could attract regulatory sanctions or corrective measures aimed at enforcing accountability.
The Road Ahead
Stakeholders say the success of the directive will depend on effective implementation, adequate funding, and strong collaboration across the power sector.
As Nigeria continues efforts to reform its electricity industry, reducing transmission losses remains a critical step toward achieving a more reliable and sustainable power supply system.
Source: The Nation