Financing Forecasting Analysis Of Provincial Power Grid Corporations

In recent years, with the development of social economy, power grid investment is increasing gradually. State Grid Corporation of China has proposed large scale of UHV investment with 270 billion yuan in the "12th Five Year" period. And the UHV power grid pattern construction of three vertical and three horizontal ring will be finished in 2015. With the booming construction of UHV projects, the investment pressure of provincial power grid corporations is huge. Since the increasing trend of electricity sales is stable, there is a huge gap between Power Grid Corp's self capital accumulation and the demand of construction investment. In this paper, it took Z provincial power grid corporation as an example to analysis and forecast the financing gap in order to quantify the financing gap.Firstly, this paper described the development trends of financing management modes, financing gap and related forecasting methods. Second, it took data from Z provincial power grid corporation as an example to analysis the current status of financing environment and financing management control modes. After that, this paper has made a deep research on the formation mechanism of the financing gap. It analyzed the effect factors of the financing gap including the cash inflow and outflow volume of business operation activities, investment activities and financing activities. Then it adopted reasonable forecasting methods to forecast key cash flow of electricity sales, investment income, purchase expenses, employee salary payment, investment in infrastructure spending and other business activities. According to the optimized prediction results, it combined the net cash flow of operating activities, investment activities and financing activities with capital reserve amount to calculate the financing gap. Finally, it provided flexible capital management strategies in the transactions with suppliers, customers and banks based on the related results of financing gap analysis to help improve capital management efficiency.Based on the actual problem of financing gap in the power grid corporations, this paper put forward the lean calculation model of financing gap, which is beneficial to improve the operation mode of provincial Power Grid Corps and reduce the amount of financing cost with significant practical significance for the power grid corporations.