Remuneration Design And Research For State-owned Power Group Corporations After The Plant-Grid Separation

On 20^th October 2002, the previous national power company declared the specific plan for reform of the power system that involves setting up the national grid company, the south grid company; reconstructing and establishing five power generation companies such as Huaneng, China National Power, China Huadian, Datang Power Generation and China Power Investment. At present, all companies through reconstruction have been granted with licenses ushering in a new era of the china power industry. Though, the aim of the national power reform is to achieve the "Plant-Grid Separation, Competition for Hooking on the Grid", introduce the market competition mechanism into the power industry and carry out screening superiors through selections, which is of great importance, a problem as how to further the reform inside a state-owned power generation enterprise in China is challenging all people engaged in the power industry when the power market environment changed and more enterprises are conducting the power business, etc. This article focuses on the problem of the remuneration design for the five state-owned power generation group corporations and demonstrate which way it shall follow: the mode in the past years or a newly-established mode. At the beginning, there is a brief introduction to the academic knowledge in relation to the remuneration management. Then, in conjunction with the development of the remuneration system in the state-owned power generation industry, it analyzes the current status of the remuneration system for state-owned power generation group corporations setting forth the advantages and disadvantages and puts forward a new optimized design. Finally in the article, it concludes that new design is more adaptable to the demand of current development trend proved by its specific application in Jintang Power Generation Co., Ltd. With ten-year working and practice experience in Jintang Power Generation Co., Ltd., and more than two years studying in MBA, the author analyzes the current remuneration system and points out a sound direction for solving problems such as the limitations for deepening the reform of the power system in China, establishment of a new...