Construction of a Comprehensive Assessment Indicator of the Energy

Company's Activities in the Context of Sustainable Development

Zhanna Chupina

1 a

, Petr Afonin

2 b

, Elena Lebedeva

2 c

Alexey Uhanov

1 d

and Anton Boykov

1 e

RUDN University, Moscow, Russia

Electrotechnical University «LETI», St. Petersburg, Russia

Keywords: Circular economy, sustainability, energy enterprises, complex assessment of activities, economic indicator.

Abstract: The article presents the concept of the final result of the energy company and substantiates that the final result

of a particular energy company will be its contribution to the creation of national income, in this regard, the

article presents a formalized model for calculating national income. The article makes an attempt from the

standpoint of system approach to create such a synthetic indicator, which at the level of the energy company

would take into account the supreme interests of the country's economy. Thus, when forming a comprehensive

indicator to assess the activities of the enterprise, all indicators directly or indirectly affect the value of the

evaluation indicator and, therefore, determine the success or failure of the energy industry enterprise.

1 INTRODUCTION

The need to direct the activities of an energy company

to ensure the best end results brings forward the

problem of defining the essence of this important

economic category.

Indeed, a lot is said and written about the end

result, but what should be understood under this result

is still not clearly formulated. For example, A.I.

Baranovsky made an analysis of different authors'

points of view on the economic essence of the concept

"final result" (A.I. Baranovsky, 2007).

Thus, A. Rumyantsev believes that the final result

of an energy company is an increase in the volume of

products sold to society (A. Rumyantsev et al., 1987),

improvement of their quality and improvement of the

nomenclature. M. Bronstein believes that the final

result is expressed through the plan-order and the

value of net profit (Bronstein M.L., 1965). L. Abalkin

proposes to express the final result through the

indicators of product supply, net profit production

volume and net production (L.I. Abalkin, 2000). R.

Belousov is convinced that in a generalized form the

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final results of enterprise activity are characterized by

normative net production and profit, combined with

cost standards (L.S. Belousov, 1990).

Such a large number of definitions indicates that

attempts to penetrate more deeply into the semantic

essence of the final result deserve serious attention

(A. Dubgorn et al., 2018). The solution to this

question is directly related to the efficiency of the

future economic mechanism. According to the

authors, the end result is the results, which are

manifested, on the one hand, through a specific form

of the finished product, and on the other hand,

through the costs associated with its use (A.V. Kozlov

et etc., 2016).

Thus, the concept of the final result should be

limited to some time interval. In this case, firstly, it is

necessary to take into account the existing practice,

this interval is best to take equal to one year, so that it

is easier to make a link to the annual plan, annual

reporting, etc. Secondly, it is necessary to link the

result of activity of a particular energy enterprise with

the result of functioning of the national economy as a

whole, which most fully characterizes the indicator of

Chupina, Z., Afonin, P., Lebedeva, E., Uhanov, A. and Boykov, A.

Construction of a Comprehensive Assessment Indicator of the Energy Company’s Activities in the Context of Sustainable Development.

DOI: 10.5220/0011555900003524

In Proceedings of the 1st International Conference on Methods, Models, Technologies for Sustainable Development (MMTGE 2022) - Agroclimatic Projects and Carbon Neutrality, pages

123-126

ISBN: 978-989-758-608-8

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

123

national income (E.G. Anisimov et al., 2016).

Consequently, the end result of a particular energy

enterprise will be its contribution to the creation of

national income.

But the national economy is a complex system,

and to determine the contribution of an individual

enterprise to the creation of national income (Fabian

Takacs et al., 2022). If the activity of an enterprise

changes (for better or for worse), this will affect, first

of all, the activity of related enterprises, and through

them, along the chain of production relations, the

activity of related enterprises and, ultimately, the

activity of the national economy as a whole.

The task of assessing the activities of the energy

company will be reduced to obtaining a quantitative

expression of this activity in an indicator that is

adequate to the indicator that expresses national

income (G. Ya. Vagin et al., 2009). This expression

will be a conditional reflection of the final national

economic result of the enterprise.

2 FORMALIZED MODEL

PRESENTATION

As you know, the formula for determining national

income can be presented as follows:

National income = Total social product -

Compensation fund

It follows from this formula that the growth of

national income is ensured when the growth of the

total social product outstrips the growth of the

compensation fund (I.G. Akhmetova et al., 2013).

And this is possible, first, with an increase in the

production of products needed by society, second,

with the outstripping growth of production volumes

of important for the national economy and scarce

products, and, third, with a relative reduction of all

material and fuel-energy costs in social production, a

relative acceleration of the turnover of production

funds. But it should always be borne in mind that the

costs of the present period to a great extent

conditioned by what were the costs in the past (I.M.

Zaychenko et al., 2016). Similarly, future costs

depend on today's costs. This continuity and

interdependence of costs over time and should be

considered when expressing the final economic result

at the enterprise level (I.V. Gentsler et al., 2009).

Using this situation as a starting point, we can

make a formula to determine national income:

ФCH −=

where H is the amount of national income

calculated for a certain time interval; C and F are,

respectively, the total public product and the

compensation fund for the same time interval.

It follows that:

;

НП

ССС +=

НП

ФФФ +=

where

- part of the total social product

created in a given time interval, due to the results of

past labor;

- the rest of the aggregate social

product due to the results of labor in a given time

interval;

and

- parts of the compensation

fund due to the results of labor in the past and the

given time intervals, respectively.

2.1 An example of the total public product

)1()1()1(

)(

−−−

+==

CCCС

(1)

This expression means that the part of the

aggregate social product created in the k-th time

interval at the expense of the results of past labor is

equivalent to the aggregate social product of the

previous time interval.

Thus, it is possible to present the aggregate social

products of different time intervals in the following

form:

;

)1()1()1( −−−

CCС

(2)

;

)()1()()()( n

CCCCС +=+=

−

(3)

)1()()()1()()1()1()1( +++++

++=+=+=

CCCCСCCC

In its final form it has the form:

)1()()1()1( +−+

++=

CCCС

(4)

From expression (4) it follows that

)1()()1()1( +−+

++=

ФФФФ

(5)

Thus, using expressions (4) and (5), we can finally

write for national income:

)1()()1()1( +−+

++=

НННН

(6)

It follows from expression (6) that national

income in the time interval depends enormously on,

)1( +n

the national income over the time interval

depends to a great extent on what the national income

was in the

)1( −n

time interval and how much was

added to it in the n-th and

)1( +n

time intervals.

But if this is true, then the opposite would also be

true: the current national income, i.e., the income of a

given time interval will largely determine this or that

value of national income in the time intervals of the

near future, i.e., the future result depends on the

present (K.K. Yumkell, 2009). Hence it follows the

most important methodological provision that the

activity of the national economy in a certain time

interval should be assessed, strictly speaking, not only

by those specific results of the same interval, but also

MMTGE 2022 - I International Conference "Methods, models, technologies for sustainable development: agroclimatic projects and carbon

neutrality", Kadyrov Chechen State University Chechen Republic, Grozny, st. Sher

124

take into account what potential opportunities in the

production of aggregate social product and what the

costs in subsequent periods will be.

Considering the specific activity of production, it

is necessary to clearly imagine that its final result will

cover not only the stage of production, but also the

stage of product circulation (its transportation to the

consumer, storage in intermediate warehouses and

bases), as well as the stage of consumption or

operation of products at the consumer (Lemesheva, Z.

et. etc., 2019). Thus, to assess the activities of

enterprises in the energy sector from the perspective

of national economic interests, it is necessary to

consider the costs and results in three interrelated

areas of social production, following one another and

constituting in their totality their national economic

unity.

Only a systematic approach to evaluating the

activity of a producing link makes it possible to obtain

accurate data on its contribution to the final national

economic result (Prasanta Kumar Dey et al., 2022). If

these links are artificially severed, then the first

producing link will structure its activity in such a way

as to obtain the maximum benefit for itself. The

interests of the subsequent links, as well as the results

of the activities of all three interconnected links

together, will be ignored by the first link in this

approach to evaluation, which again, is the case in

many cases in practice at present.

For enterprises in the energy sector, the first link

(first stage) is production. It is for this link and it is

necessary to find an objective synthetic evaluation

indicator.

The next stage is the product circulation stage.

Costs at this stage to a large extent depend on the

transportability of products, on its safety, quality.

The last stage is the stage of product consumption.

It is at this stage to the greatest extent reflect the goal

of previously carried out production and the cost of

achieving it. In other words, at this stage the final

economic result of not only consumption, but also

previous production is manifested.

Thus, at formation of a complex indicator of an

estimation of activity of the enterprise all indicators,

namely: quantity of production, quality of the

received production, terms of reception of

production, all these indicators directly or indirectly,

directly or indirectly should influence the size of an

estimative indicator and, hence, define success or

failure of work of the enterprise of power branch.

3 CONCLUSIONS

The proposed indicator of comprehensive

performance assessment (CPA) focuses the work of

the energy industry enterprise to achieve the best final

results of the national economy. None of the known

to science and practice indicators has such a property.

Thus, an attempt has been made, from the perspective

of a systematic approach to create such a synthetic

indicator, which at the enterprise level would take

into account the supreme interests of the economy.

With the introduction of such an indicator in

economic practice, it will be possible to implement

not in words, but in deeds the most important

principle of improving the economic mechanism:

what is beneficial to the economy as a whole, should

be beneficial to each enterprise.

ACKNOWLEDGEMENTS

This paper has been supported by the RUDN

University Strategic Academic Leadership Program.

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