Majority of Establishments are Engaged in Water Collection, Purification and Distribution
· The 2005 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 972 electricity, gas and water establishments. More than half of these establishments (54.6%) had an average total employment (ATE) of less than 20 while 45.4 percent had an ATE of 20 and more.
· Of the total establishments count, majority (62.0%) was engaged in the collection, purification and distribution of water through a system of mains. About 37.3 percent were involved in the generation, collection and distribution of electricity for sale to households, industrial and commercial users while only 0.6 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 shows the distribution of establishment by industry group for the electricity, gas and water sector.
Electricity Establishments Generate the Largest Employment
· Employment in all electricity, gas and water establishments reached a total of 71, 111 workers. Establishments with ATE of 20 and more workers employed the bulk of workers reaching 65, 944 or 92.7 percent of the total employment for the sector.
Among industry groups, electricity generation, collection and distribution employed 46, 892 employees or 65.9 percent of the total. Establishments engaged in the collection, purification and distribution of water ranked a far second with 22, 968 employees (32.3%). Steam and hot water supply plants employed the least number of workers reaching only 1, 251 or 1.8 percent of total employment. Figure 2 shows the distribution of employment by industry group for the electricity, gas and water sector.
Average Annual Compensation per Worker is P311.1 Thousand
· Total compensation paid in 2005 amounted to P22.1 billion, equivalent to an average annual compensation per worker at P311, 073.
· Across industries, steam and hot water supply plants paid the highest compensation per employee in 2005 with an annual average rate of P543, 939. Establishments engaged in electricity generation, collection and distribution paid an annual compensation rate of P345, 027 during the same year. Water collection, purification and distribution-engaged establishments, however, paid the lowest average annual compensation for the sector amounting to only P229, 056. Figure 3 displays the average annual compensation by industry group for the electricity, gas and water sector.
Electricity Establishments Account for the LionÃƒÂ¯Ã‚Â¿Ã‚Â½s Share in Revenue for the Sector
· Total revenue earned by the sector during the year 2005 was estimated at P499.5 billion with electricity generation, collection and distribution establishments accounting for the lions share of 93.6 percent of total revenue valued at P467.4 billion.
· The revenue shares of water collection, purification and distribution industry and steam and hot water supply plants were 5.1 percent (P25.5 billion) and 1.3 percent (P6.6 billion), respectively.
Electricity Establishments Generate the Highest Output Value Worth P451 Billion
· Total value of output generated during the year 2005 by the electricity, gas and water sector amounted to P482.3 billion. Electricity generation, collection and distribution industry generated the highest output value at P451 billion or 93.5 percent of the total. The shares of water collection, purification and distribution industry and steam and hot water supply plants were 5.2 percent (P24.9 billion) and 1.3 percent (P6.3 billion), respectively. Figure 4 displays the distribution of the value of output by industry group.
· Total cost incurred during the year 2005 by all electricity, gas and water establishments amounted to P381.2 billion.
Electricity Establishments are also the Most Productive among Industries
Labor productivity for the sector, measured by the ratio of value added per total employment, was recorded at P2.4 million. Electricity, gas and water establishments with ATE 20 and more produced the highest labor productivity for the sector valued at P2.5 million compared with those establishments with ATE of less than 20 at nearly a quarter of a million pesos.
· Electricity generation, collection and distribution recorded the highest labor productivity worth P3.2 million followed by steam and hot water supply plants with P3.0 million. Water collection, purification and distribution, on the other hand, had the lowest labor productivity amounting to only P0.7 million. Figure 5 displays the labor productivity by industry group.
The 2005 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office aimed at collecting information on the structure and levels of economic activities in the country. It is the 38th in the series of annual surveys of establishments conducted by the Office and the 24th in the series for the electricity, gas and water sector.
The survey is undertaken by authority of five (5) legislative acts and presidential directives, namely; Commonwealth Act No.591, Presidential Decree No.418, Executive Order No.121, Executive Order No.352 and Executive Order No.5.
The reference year of the survey is 2005.
Scope and Coverage
The unit of enumeration of the survey is the establishment. It is defined as an economic unit under a single ownership or control, engaged in one or predominantly one kind of economic activity at a single fixed location. Establishments are classified according to economic sectors, which are the scope of the survey. Fourteen sectors of the Philippine economy are covered in the 2005 ASPBI.
One of these sectors is the electricity, gas and water. It is comprised of four (4) industry groups, namely;
- generation, collection and distribution of electricity
- manufacture of gas; distribution of gaseous fuels through mains
- steam and hot water supply; and
- collection, purification and distribution of water.
Stratified systematic sampling was utilized to select samples for the 2005 ASPBI.The updated 2004 List of Establishments (LE) was the frame used to draw the sample establishments.
Employment size, defined as the average total employment (ATE) of an establishment, served as the stratification variable. The domains were region and industry for the group of establishments with ATE of 20 and more. For establishments with ATE of less than 20, the whole country and industry served as the domains.
The amended 1994 Philippine Standard Industrial Classification (PSIC) was used to classify establishments according to economic activity from which they derive their major income or revenue. On the other hand, geographic locations were classified according to the Philippine Standard Geographic Classification (PSGC).
Questionnaires were distributed to sample establishments starting on April 3 to April 28, 2006. The respondents were generally given 30 days within which to accomplish the questionnaires. Collection of accomplished questionnaires from respondents was programmed from May 2, 2006 until August 31, 2006. Manual and machine processing, and tabulation of data were undertaken at the Central Office.
The effective response rate is 83.9 percent for the electricity, gas and water sector. For establishments with ATE of 20 and more workers, the effective response rate is 84.6 percent while that for establishments with ATE of less than 20 workers, it is 76.7 percent.
Concepts and Definition of terms
Establishment - 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, 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 the production.
Electricity establishment - 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 establishment - a plant engaged in the manufacture of gas, in gas works and in the distribution of manufactured or natural gas through a system of mains to users.
Water establishment - 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 amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishments 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 the establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.
Total employment - includes all persons who worked in or for the establishment as of the period November 15, 2005.
Paid employees - include 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 establishment and do not receive regular pay. Included are working owners who do not receive regular pay, apprentices and learners without regular pay.
Salaries and wages - are payments in cash and in kind to all employees, prior to deductions of employees contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime and other benefits.
Employer's Contribution to SSS/GSIS and the like - refers to payments made by the establishment for social security in behalf of the employees. Examples are SSS, GSIS, PhilHealth and PAG-IBIG.
Revenue - refers to cash received and receivables for goods sold and services rendered. Valuation is in producers price (ex-establishment), net of discounts and allowances, including duties and taxes, and excluding subsidies.
Cost - refers to all expenses incurred during the year whether paid or payable.Valuation is at market price including taxes and other charges, net of rebates, returns and allowances. Included are goods and services received by the establishment from other establishments of the same enterprise and valued as though purchased.
Subsidies - are 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 process and to protect it against competition. Included are tax audit, tax and duty exemptions, price support and price discount, and interest rate subsidy.
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.
Value of Output - is a derived measure of output that represents the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods sold in the same condition as purchased, fixed assets produced on own account and change in inventory of finished goods, work-in-progress and goods for resale.
Gross additions to fixed assets - is equal to capital expenditures less sale of fixed assets, including land.
Inventories - refer to the stock of goods owned by and under the control of the establishment as of fixed date, regardless of where the stocks are located.Valuation is at current replacement cost in purchasers prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Finished products inventory - refers to the goods made by the establishment which are ready for sale/shipment as of reference date. Valuation is at producers price.
Work-in-process inventory - inventory refers to the value of all goods 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 producers price.
Change in inventories - is the total value of ending inventory less the total beginning inventory.
Census value added - represents the difference between the value of output and the total costs of materials and supplies consumed, fuels 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 for others and other costs.
Detailed Statistical Tables
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