Features of The Formation and Management of Production Costs at Energy Enterprises

Abstract :

The article describes the features of formation and management of production costs at energy enterprises. The relevance of the research is determined by the fact that cost reduction leads to an increase in the company's profit and overall economic stability, which is a strategic advantage in a competitive environment. The study identified the following features of cost formation in the energy sector: the cost of energy takes into account the costs not only for production, but also for transmission and distribution of energy; the absence of work-in-progress leads to the fact that production costs can be fully attributed to the cost of energy produced; the cost of energy is affected by the cost of maintaining the capacity reserve at power plants; the level of energy costs can vary significantly for individual types of power plants and power systems; there is a dependence of the cost of energy source. The results of the research activities of the energy company – PJSC “IDGC of Center” – “Kurskenergo” determined that the percentage of the cost of transmission of electricity in total cost structure of company's sales is quite high, however, the share of gross profit of the activity in the general structure of gross profit of the enterprise is much less. Thus, it is necessary to reduce the cost of electricity transmission by optimizing the cost of this type of activity. In addition, the main areas of cost reduction and profit increase should include the following: measures to reduce borrowing; increase capacity utilization of power grid equipment; reduce the level of electricity losses; reduce unit investment costs; increase labor productivity and innovation efficiency; meet the deadlines for technological connection and achieve a level of reliability of provided services.