Research On Generator Of Fixed Assets In Zhuzhou Power Company

At the end of 2002, China carried out the electric power reform marked by “Plant-Grid Separation”, the separation of power plants from power grids, in order to help power generating companies gradually displace the original monopolistic business model. Before the reform, the power generating companies were closely connected with power grids and implemented the unified accounting, where low-efficient generators had no mature exit mechanism even at the times of losses. After the reform, with the introduction of the competition mechanism, low-efficient power sets gradually became non-performing assets of power companies since their operating conditions and economic benefits could no longer be guaranteed under the influence of Plant-Grid Separation. As a result, how to exploit and activate this part of the assets have become the important subject faced by power generating company.This paper will start from the analysis and definition of non-performing assets and utilize the asset valuation, financial analysis, statistical forecast and other economic management theories and analysis methods to find out a more appropriate way of asset disposal under the current policy of shutting down small thermal power plants. The author will raise a few fixed asset disposal proposals and put them under analysis, comparison and selection so as to handle the low-efficient power generating units of power companies properly. The last part of the paper will evaluate the operating condition after Zhuzhou Company’s disposal of non-performing assets, and propose the future reform direction of power generating industry.The research value of this paper is to, through analyzing the Zhuzhou power generation company’s case, provide actual guide and reference with power generating companies when disposing incompetent generator sets after the electric power system reform. The author’s conclusion is that the relationship between coal consumption of power supply and the on-grid price is the key factor to decide whether a generator set could survive. Currently, the most reasonable choice for Zhuzhou power generating company is to put incompetent generator sets under the public auction. The future will witness more vitality and viability in power generating companies injected from the electric power reform.