The Analysis And Strategy On The Business Management Status Of Huaneng Nantong Power Plant

Founded in June 1985 and currently with a total installed capacity of 1400MW, Huaneng Power International Inc. Nantong Branch Nantong Power Plant (hereinafter referred to as "Power Plant") is the first of its kind of power plants built through a fund-raising mechanism in Jiangsu Province. It is a coal-fired power plant. In the past couple of years, the rapid economic growth in Jiangsu has given strong impetus to the rapid growth of both the power consumption and the power generation in the province and as a result, the sales revenue, the turned-over profits and the handed-over taxes of the power plant have reached the highest level in its history.Based on the extensive investigations and research, the author has made analysis on the business management of the power plant in the past couple of years in the areas of the production and business results, the production and economical parameters, the production cost and expenditures and the financial status, concluding that the business management status of the power plant, on the whole, is somewhat ideal. However, with the continuous deepening of the reform of the system of the power industry, various problems that have existed in the realm of business management of the power plant have gradually emerged. The problems include the lack of the capability to respond to market changes. The market-oriented concept, the concept of competition and the cost consciousness on the part of the employees are yet to be evolved,, the economic efficiency-centered production and business management mechanism is yet to be established, and the focusing on the "Three Electricity-related Endeavors ", namely, the generation of megawatts, the pricing and the collection of the payment of electricity shall be further increased.In view of the existing problems, the author has earnestly explored on the root causes of the various problems in question and, by using theories and knowledge of financial and business management, has put forward recommendations and specific solutions in six areas for the improvement of the current production and business management. They are: in order to maximize the sales revenue of the power plant, the management of the "Three Electricity-related Endeavors " must be enhanced; in order to enable the power plant to practice a low cost operation, the fuel management and the cost control must be strengthened and in order to provide the power plant with a competitive edge, emphasis must be given in the study of the power market. At the same time, believing that in order to continuously adapt to the market and competition-oriented environment , there is a need for the power plant to improve its business management mechanism, the author has put forward measures and strategies for the improvement of the financial management of the business and the internal contracting and incentive mechanism. The author has given emphasis on the analysis of the management of the "Three Electricity-related Endeavors " and the management of fuel cost.