The Kerala State Electricity Regulatory Commission (KSERC) has granted post-facto approval to nine power banking and swap arrangements entered into by the Kerala State Electricity Board Limited (KSEB) between July 2025 and May 2026. The order, issued on August 18, 2026, followed a petition filed under Regulation 78 of the state tariff regulations and the Electricity Act, 2003. KSEB used banking arrangements to manage seasonal variations after strong monsoon rainfall in July and August 2025 raised hydroelectric generation and produced surplus energy. To manage reservoirs ahead of planned maintenance at Moolamattom Powerhouse, the board banked about 367.7 mn units with utilities in Chhattisgarh and Punjab and trader Manikaran Power Limited, and those entities returned more than 384 mn units between November 2025 and February 2026. The return obligation ranged from 103 per cent to 105 per cent. The board procured 37.2 mn units from Andhra Pradesh Central Power Distribution Corporation Limited in July 2025 through an over-the-counter platform and returned 38.688 mn units in October 2025. An arrangement with Madhya Pradesh Power Management Company Limited supplied 76.55 mn units during August and September 2025, which were returned between December 2025 and February 2026. Ahead of an anticipated summer shortage in March to May 2026, KSEB entered forward banking deals with Punjab State Power Corporation Limited, which supplied 292.8 mn units in March and April with returns scheduled from mid-June to August 2026, and with Uttar Pradesh Power Corporation Limited, which supplied 147.2 mn units under two over-the-counter agreements with returns due between June and September 2026. The Commission observed that while prior approval is generally required for procurement, regulatory provisions permit short-term banking in contingency situations subject to subsequent filing. Considering operational requirements, grid stability and cost optimisation, KSERC ratified all nine arrangements and disposed of the petition.