Considerations on the Cost of Electricity Production in the Context of Integration Operating Activities Underground and Production of Coal in Thermal Power Stations Electricity in the Jiu Valley Mining Area

AbstractIn the Jiu Valley mining basin the largest coal deposit of Romania is explioted. The form of organization operating activities varied in time from the mining plant that integrate all mining related activities (less than the production of electricity) to mining company of national interest (from which almost all related activities of proper operation were outsourced). During this period, electricity production activity was organized economically independent in two companies which operated the two power plants powered by coal: Paroseni power plant (located in the Jiu Valley, with spaced mass transport mining) and thermo Mintia (located outside the Jiu Valley, the mining mass transport distance of 100km). The economic results of the three entities have experienced different stages of evolution, circumscribed overall economic development of Romania. In terms of energy market liberalization in Romania, in 2012 it was decided to integrate the activities of coal mining and electricity production, the company Energy Complex Hunedoara SA being founded. The economic entity has in his structure two power plants and four units in underground mining coal. This paper analyzes the effects that this integration has had on the cost of electricity production, trying to highlight the economic benefits of it. They also highlighted possible directions for future development of the Company's economic results in the context of Romania's integration into a regional electricity market. The analysis is based on the cost of the two power plants and the four mining units. It is revealed the costs structure and their evolutionary trends. It is used the cost structure in fixed costs and variable costs (using the criterion of their behavior in relation to the level of activity) in order to allow predictions about the evolution of costs, and transformation of cost information into a useful tool for managerial decision making related to the level of activity