For the Republic of Kazakhstan, the electric power industry is important because the country’s key industries, such as metallurgy and oil and gas production, are characterized by high energy intensity. Accordingly, the competitiveness of the industry of the Republic of Kazakhstan and the quality of life of the population largely depend on reliable and high-quality energy supply to consumers.

In 2023, the Company recorded and investigated 65 technological violations, of which 5 failures of the 1st degree and 60 failures of the 2nd degree, including: 53 technological violations occurred on power lines, 12 technological violations occurred at substations. There were no accidents. Compared to 2022, the indicator has deteriorated by 23%, due to the impact of adverse weather conditions.

To assess the level of network reliability in international practice, indicators are used:

SAIDI

SAIDI (System Average Interruption Duration Index — average duration of shutdown) — characterizes the average duration of one shutdown in the system per year in minutes.

SAIFI

SAIFI (System Average Interruption Frequency Index — the average frequency of damage in the system) — characterizes the average frequency of power supply interruptions consumers.

Due to the impact of natural phenomena, 46 technological violations occurred (71% of the total).

Climate change is causing an increasing number of serious and extreme weather events that pose a danger to our facilities, including days of strong winds and rains, hail, hurricanes, cyclones, droughts, as well as the risk of fires and floods, among others. Extreme weather conditions and changes in air temperature can lead to a load on the system, reduced efficiency and possible interruptions in customer service.

The main adverse meteorological factors are strong wind, thunderstorm overvoltages, formation and discharge of icy-frost deposits on overhead line wires and lightning cables. The Company has developed a risk register that takes into account climatic factors, during the development of which potential scenarios that KEGOC JSC may face were analyzed, including variability of weather conditions, as well as an increase in the severity and frequency of extreme weather events. The consequences of the realization of this risk may be:

• Failure of substations and power line equipment;
• Reduction in the volume/quality of electricity supplies to consumers;
• Under-discharge of electricity.

The risks associated with climate change are reflected in the Company’s Risk Register, which is used to manage changes.

Thus, the risk of failure of production assets may arise due to climatic factors such as the impact of natural phenomena. To mitigate this risk, the Company conducts the following activities:

• raining of personnel in the skills of emergency recovery operations;
• ensuring the readiness of vehicles and special equipment for emergency recovery operations;
• staffing of branches with emergency supplies;
• insurance of PS equipment;
• conducting emergency training;
• development of proposals for the introduction of innovations to reduce the impact of natural phenomena on the Company’s production assets.

To check readiness for actions to eliminate possible emergencies, the Company participates in annual republican command and staff exercises, conducts object training and seismic surveys in areas with a high risk of earthquakes (South, East, West). These exercises check the completeness of the development of plans, the coherence of civil protection units, the action of forces and means during emergency recovery work at thermal power plants.

The following efficiency indicators are defined for achieving strategic Goal 1:

• Grid Аvailability (657 or The availability of the electric grid, measured in % for the reporting year)
• AIT (Аverage Interruption Time — the average interruption time, in minutes).

By the end of 2023, the Company’s planned strategic efficiencies of KEGOC JSC have been achieved and exceeded.