Majority of Establishments were in Collection, Purification and Distribution of Water
There were an estimated total number of 1,009 establishments in business operations during the year 2001 in the electricity, gas and water sector according to the results of the 2002 Annual Survey of Philippine Business and Industry (ASPBI).
Of the total establishments count, majority (63.4 percent or 640 establishments) was in the collection, purification and distribution of water through a system of mains to households, industrial, commercial and other users. About 36.2 percent (365 establishments) were engaged in the generation, collection and distribution of electric energy for sale to households, industrial and commercial users while only 4 establishments (0.4 percent) were steam and hot water supply plants. None of the establishments was engaged in the manufacture of gas and distribution through a system of mains. Figure 1 displays the distribution of establishments by industry for the electricity, gas and water sector.
Largest Employment was Generated by Electricity Establishments
Total employment during the year 2001 was recorded at 64,532 workers. Although establishments engaged in electricity generation, collection and distribution ranked second only in terms of the number of establishments, this industry employed more than half (69.3 percent or 44,695 workers) of the total employment for the sector. Establishments engaged in the collection, purification and distribution of water ranked a far second with 19,021 workers (29.5 percent). Steam and hot water supply plants, having the least number of establishments, accounted for only 815 workers or 1.2 percent of total employment. Figure 2 shows the distribution of employment by industry for the electricity, gas and water sector.
Average Monthly Compensation per Worker was P21,775
Total compensation paid in 2001 amounted to P16.9 billion or equivalent to an average monthly compensation of P21,775 per worker.
Among industries, steam and hot water supply plants paid the highest average monthly compensation to each worker amounting to P39,697. Average monthly compensation of workers in electricity generation, collection and distribution was P24,259. The lowest average monthly compensation, worth P15,174, was paid by water collection, purification and distribution establishments. Figure 3 compares the average monthly compensation by industry for the electricity, gas and water sector.
Biggest Revenue was Earned by Electricity Establishments
The total revenue earned by the sector during the year 2001 was estimated at P371.1 billion, with electricity generation, collection and distribution industry accounting for the lion?s share or 95.4 percent of total revenue valued at P354.1 billion.
The revenue shares of water establishments and steam and hot water supply plants were P12.5 billion or 3.4 percent and P4.5 billion or 1.2 percent of total revenue, respectively. Figure 4 shows the revenue shares by industry for the electricity, gas and water sector. >
Total cost incurred by all electricity, gas and water establishments during the year 2001 was P275.2 billion.
National Capital Region Accounted for the Bulk of Employment and Revenue
About 15 percent (56 establishments) of the total electricity and water establishments with ATE of 20 or more workers was located in Central Luzon (Region III). Following were CALABARZON (Region IV-A), Central Visayas (Region VII) and Western Visayas (Region VI) with respective shares of 13.4 percent (50 establishments), 8.6 percent (32 establishments) and 8.3 percent (31 establishments) of the total.
Although the National Capital Region (NCR) had only 19 electricity and water establishments with ATE of 20 or more workers, this region generated the biggest employment reaching to 11,961 workers or 20 percent of total employment and contributed more than one-third (34.5 percent) of total revenue amounting to P127.4 billion.
Labor Productivity was P2.0 Million
Labor productivity the sector, measured by the ratio of value added per paid employee, was estimated at P2.0 million. Steam and hot water supply plants recorded the highest labor productivity valued at P2.9 million.
Labor Productivity for Electricity Establishments with ATE less than 20 Workers Indicated a Negative Value
However, labor productivity for electricity generation, collection and distribution establishments with average total employment (ATE) of less than 20 workers registered a negative value of P874.8 thousand. This was attributed to the big amount spent on of fuel used in the operation and maintenance of diesel power plants owned and operated by the National Power Corporation (Napocor) amounting to P1.0 billion or 60 percent of total cost. Figure 5 compares labor productivity by industry and by ATE size of less than 20 workers and more than 20 workers.
Scope and Coverage
The 2002 Annual Survey of Philippine Business and Industry (ASPBI) aimed to collect and generate information on the levels, structure and trends of industries and businesses in the entire country. It has the calendar year, 2001, for its reference period. One of the 14 sectors covered in the survey is the electricity, gas and water sector.
All electricity, gas and water establishments with average total employment (ATE) of 20 and more workers were covered on a 100 percent basis and those with ATE of less than 20 workers were selected using stratified systematic random sampling.
The response rate is 86.3 percent of the 388 sample establishments for the electricity, gas and water sector. Adjustments for non-response were made through imputations.
Concepts and Definition of terms
Establishments - an economic unit under single ownership or control, i.e., under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location, and having permanency of assets in its premises during the operation. It is also defined as the unit that is engaged in the production of the most homogenous group of goods and services, usually at one location, but sometimes over a wider area, for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in this production.
Electricity establishments - A plant engaged in the generation, transmission and/or distribution of electric energy for sale to users, or one which produces electricity for its parent enterprise.
Gas establishments - A plant engaged in the manufacture of gas, in gas works and the distribution of manufactured or natural gas through a system of mains.
Water establishments - Water system/waterworks engaged in the collection, purification and distribution of water to users.
Economic activity or business - is the activity of the establishment as classified under the 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.
Average total employment (ATE) - is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.
Total Employment - is the number of persons who worked in or for the establishment as of November 15, 2001.
Paid employees - are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, workers receiving pure commissions only and workers on indefinite leave.
Working owners - are owners who are actively engaged in the management but do not receive regular pay, i.e., not included in the payrolls. Managers and directors of corporations working for pay are reported as managers.
Unpaid workers - are persons working for at least one-third of the working time normal to the establishment and do not receive regular pay.
Salaries and wages - are payments in cash or in kind to all employees, prior to deductions for employee?s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Overtime Pay - are payments given for extra hours worked.
Other benefits - include bonuses, cost of living allowances, commutable transportation and representation allowances, food, housing, commissions paid to salaried employees, separation, retirement, terminal pay, gratuities, etc. Excluded are cost of uniform/working clothes and reimbursable transportation and representation allowances.
Employer's Contribution to SSS/GSIS and the like - refers to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAGIBIG.
Revenue - includes cash received and receivables for goods sold and services rendered. Valuation is at producer's prices (ex-establishment), net of discounts and allowances, including duties and taxes but excluding subsidies.
Cost - refers to all expenses incurred during the year whether paid or payable. Valuation is at market prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Indirect taxes - refer to all taxes, other than income tax, incidental to the production or sale of goods and services, which are chargeable as expenses including business license, BIR stamps, real estate tax and other local taxes.
Subsidies - are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.
Fixed assets - are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, computers and peripherals, telecommunications equipment and apparatus, other machinery and equipment including furniture and fixtures, and cultivated assets.
Book value of fixed assets - is the initial value or acquisition cost of fixed assets less the accumulated depreciation.
Depreciation - is the total amount set aside for the year to cover the decrease in value of fixed assets owned by the establishment because of foreseen obsolescence, wear and tear as a result of operation and normal amount of accidental damage.
Capital expenditures - for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or on own account. Fixed assets received from other establishments belonging to the same enterprise are valued as though purchased.
Gross additions to fixed assets - refer to the cost of acquisition of fixed assets acquired in 2001 less the value of sales of fixed assets during the year.
Inventories - refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser?s (market) prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Finished products inventory - refer to the goods made by the establishment which are ready for sale/shipment as of a reference date. Valuation is at producer?s price.
Work-in-process inventory - refers to the value of all materials which have been partially processed by the establishment but which are not usually sold or turned over to other establishment without further processing. Valuation is at producer?s price.
Change in inventories - is computed as the total value of ending inventory less the total beginning inventory.
Census value added - represents the difference between the value of output and total costs of materials and supplies consumed, fuels purchased, electricity purchased, industrial services done by others and goods purchased for resale.
Value added - represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.
Detailed Statistical Tables
The detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 716-39-32.
Source: National Statistics Office