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The main principle of the company’s development is turning its business advantages into strategic superiority. Such business advantages include:
- Favorable location of power plants in power deficit regions
- The optimal structure of the fuel mix (coal/gas) – a significant cost management potential
- Low cost of products
- High reliability and security of power and heat supplies
- Maneuverability of equipment
- Opportunities for sales growth through introduction of market-based pricing for existing and new generation capacities
- Well-elaborated development programs and cooperation schemes
- A team of highly-competent managers and employees
The abovementioned prerequisites form the company’s strategic goal for 2006-2010 – Leadership in sales among wholesale generating companies. To achieve this goal, the management of the company is actively working in the following areas:
· Increasing competence in the area of effective power sales management;
· Conducting an active investment policy aimed at better reliability, technical upgrade, reconstruction and construction of new generating facilities;
· Increasing the effectiveness of fuel supplies.
Increasing the Company’s competence in the area of effective power sales management implies the following actions:
· Centralisation of power sales management;
· Building effective relations with retail power and heat consumers through participation in the capital of regional retail companies;
· Implementation of new technologies into the power sales system;
· Introduction of a professional training system in the area of power sales on the wholesale power (capacity) market;
· Monitoring of environment and competitors including monitoring of changes on the wholesale power (capacity) market, studying demand markets and consumers’ needs;
· Better reliability and maneuverability of equipment;
· Introduction of the ISO 9001-2000 Quality Management System.
Conducting an active investment policy aimed at better reliability, technical upgrade, reconstruction and construction of new generating facilities implies the following actions:
· Conducting the policy of information transparency complying with international requirements for a public company;
· Implementation of the project management system;
· Formation of an optimal capital structure for a long-term period;
· Economically sound reconstruction and upgrade of the existing facilities;
· Construction of new generation facilities in regions with potential power deficit and implementation of strategically important projects.
Increasing the effectiveness of fuel supplies implies the following actions:
· Setting up mutually profitable long-term partnership schemes and joint projects with gas suppliers;
· Mutually profitable long-term partnership with coal suppliers;
· Entry into fuel assets.
In order to implement the Development Strategy, OGK-5 develops, implements and introduces:
· Functional strategies;
· Strategic management system;
· Financial model for determining the Company’s value
· Key performance indicators for the Company.
The functional strategies developed by the management of the Company include the following main areas of development:
· Marketing strategy;
· Production;
· Fuel supply;
· Finance;
· HR;
· IR;
· IT. |