Grid reliability

Climate change is causing an increasing number of serious and extreme weather events that pose a threat to the reliability of the Company’s grid facilities, including the factors of strong winds and rains, hail, hurricanes, cyclones, droughts, as well as the risks of fires and floods. Extreme weather conditions and changes in air temperature may lead to strain on the system, a reduction in efficiency and possible interruptions in the service to consumers of KEGOC JSC.

The main adverse climatic factors potentially leading to negative impacts are strong wind, lightning overvoltage, and the formation and shedding of ice and rime deposits on the conductors and earth wires of OHTLs.

The Company draws up a Risk Register on an annual basis, which also includes climatic factors. In drawing it up, an analysis is carried out of the potential scenarios that KEGOC JSC may face, including the variability of weather conditions, as well as the growth in the frequency and intensity of extreme climatic phenomena. The possible consequences of the materialisation of these risks include:

• The failure of substation and power line equipment;
• A reduction in the volume/quality of electricity supplies to consumers;
• The under-supply of electricity;
• The occurrence of unforeseen costs for the restoration of equipment.

KEGOC JSC manages climate risks on the basis of the Risk Register. One of the risks affecting the reliability of the Company’s grid is the risk of the “occurrence of accidents and first-degree failures”, which may be caused by the impact of natural phenomena. To minimise this risk, the Company carries out the following measures:

• training of personnel in the skills of conducting emergency recovery works;
• ensuring the readiness of vehicles and special equipment for conducting emergency recovery works;
• equipping branches with an emergency reserve;
• insurance of substation equipment;
• conducting emergency drills;
• developing proposals for the introduction of innovations to reduce the impact of natural phenomena on the Company’s production assets.

In addition, to ensure the reliability of the grid with a view to reducing the key risk of the occurrence of accidents and first-degree failures, in 2025 the Company carried out:

• the replacement of high-voltage bushings of power electrical equipment;
• the technical inspection of substation and power line equipment with the involvement of expert organisations;
• the technical examination of the condition of substation and power line equipment with the involvement of expert organisations;
• the modernisation and reconstruction of assets;
• the analysis of technological violations in the electric grids.

Climate change and the impact of natural factors – such as floods, strong winds, earthquakes and epidemics – may create risks of the occurrence of emergency situations. To minimise these risks, KEGOC JSC pays particular attention to the training of personnel and the technical readiness of facilities.

The Company conducts emergency drills on a regular basis according to an approved annual schedule, and also participates in the national command-and-staff exercises “Köktem”, “Qys” and “Zher”, in the course of which actions to eliminate the consequences of natural disasters are rehearsed, including floods, hurricanes and earthquakes. To ensure the safety of employees, personal protective equipment is procured and updated.

In order to ensure business continuity and readiness to respond to large-scale emergency situations, the Company has developed and operates:

• accident response plans;
• action plans for the prevention and elimination of emergency situations, taking into account the specifics of the activities of KEGOC JSC.

The accident response plans define the procedure and sequence of actions of personnel, the distribution of responsibility and the necessary resources in the event of emergency situations. Their practical rehearsal is carried out during regular fire and emergency drills.

The emergency situation action plans include measures both for the prevention and for the elimination of the consequences of an ES, with an indication of the timeframes and responsible persons. The most likely risk for the Company’s facilities is fire, as well as other emergency situations. In addition, measures are provided for responding to threats of a terrorist nature, aimed at protecting the life and health of employees and the safety of property.

For the timely notification of employees in the event of emergency situations, communication and notification plans are used, as well as fire-extinguishing plans, which are part of the overall response system.

To check readiness for action in emergency conditions, KEGOC JSC participates annually in national exercises, conducts facility drills and seismic drills in regions with heightened seismic activity (the south, east and west of the country). In the course of such activities, the effectiveness of the plans, the coordination of the actions of personnel and the readiness to perform emergency recovery works are assessed.