Research On Fuel Cost Management For The A Power Generation Company

Fuel cost management is the focus for power generation enterprise every year. It determine the survival and development of power companies. Chinese large state-owned power enterprises urgently need to improve management method of fuel cost, in order to cope with the increasingly fierce market competition and achieve sustainable development, as well as make great contribution to increasing the value of asset of state. This paper selects "A" company as research object, analyzes the important factors affecting the fuel cost management of power generation enterprise with theory and practice. Meanwhile, it gives useful discussion of how to amend existing practices or innovate positive management system in-depth.Based on the strategic cost management, activity-based cost management and the Life Cycle Costing management theories, this paper enrich the theory of fuel cost management of power generation enterprises. Simultaneously, on the basis of analyzing existing cost management system of fuel, this paper disclose the main challenges such as insufficient centralized management, low efficiency of related party transactions, rough operation of cost, and defective security system. Moreover, a cost management solution of fuel power generation enterprises, which better fitted the requirements of modern cost management, is designed from three aspects:management planning, management implementation and mechanism design. Finally, this paper assesses the effect after implementation by using a sample included one management department in general headquarters (named A), a fuel company, and a power plant(named B). The results showed, the designed solution effectively improve the management level not only in strategy guide, analysis management, target controlling and evaluation. It proves that the designed solution is effective and feasible in optimizing the fuel cost management.At the end of this article, based on the cost of proposed chain, from a strategic perspective, the scientific planning and management system, the rational allocation of the organization, and then implement targeted control operations to reduce the cost of fuel power generation companies, a number of conclusions to enhance the competitiveness of enterprises in power generation, and a positive future for broader, more flexible and more efficient research made a number of recommendations.