Number of Establishments

The 2009 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 908 establishments engaged in Electricity, Gas and Water Supply activities.

Among industries, Collection, Purification and Distribution of Water recorded the highest number of establishments at 663 or 73.0 percent of the total. This was followed by Generation, Collection and Distribution of Electricity with 239 establishments (26.3%). Steam and Hot Water Supply had the least number with only 6 establishments or 0.7 percent of the total. Figure 1 illustrates the percent distribution of Electricity, Gas and Water Supply establishments for all employment sizes by industry group in 2009.

Employment

Total employment for Electricity, Gas and Water Supply sector reached a total of 71,749 workers in 2009.

At the industry level, Generation, Collection and Distribution of Electricity employed the largest number of workers with 45,172 or 63.0 percent of the total, followed by Collection, Purification and Distribution of Water with 25,510 workers (35.6%). Steam and Hot Water Supply hired the least number of workers with 1,067 or 1.5 percent of the total employment.

The average number of workers per establishment for the sector was recorded at 79. Generation, Collection and Distribution of Electricity had the highest average with 189 workers per establishment. Steam and Hot Water Supply followed next with 178 workers per establishment. On the other hand, Collection, Purification and Distribution of Water recorded the lowest average with only 38 workers per establishment. Figure 2 shows the distribution of employment of Electricity, Gas and Water Supply sector for all employment sizes by industry group in 2009.

Compensation

Total compensation paid by all Electricity, Gas and Water Supply establishments in 2009 amounted to PHP31 billion, indicating an average annual compensation of PHP445,067 per worker.

The highest average annual compensation at PHP712,164 was received by workers in Steam and Hot Water Supply, followed by workers in Generation, Collection and Distribution of Electricity with average annual compensation of PHP535,616. Collection, Purification and Distribution of Water received the lowest average annual pay of PHP273,556. Figure 3 displays the average annual compensation of workers of Electricity, Gas and Water Supply sector for all employment sizes by industry group in 2009.

Value of Output

Total value of output generated by all Electricity, Gas and Water supply establishments was estimated at PHP691.5 billion in 2009.

Among industries, Generation, Collection and Distribution of Electricity produced the highest value of output with PHP644.2 billion or 93.2 percent of the total. Collection, Purification and Distribution of Water accounted for 5.6 percent (PHP38.7 billion) of the total output value. On the other hand, Steam and Hot Water Supply had the lowest share with only 1.2 percent (PHP8.4 billion) of the total value of output. Figure 4 shows the percent distribution of value of output of Electricity, Gas and Water Supply sector for all employment sizes by industry group in 2009.

Cost

Total cost incurred by Electricity, Gas and Water Supply establishments in their business operation was estimated at PHP544.6 billion.

Generation, Collection and Distribution of Electricity incurred the highest cost amounting to PHP517.2 billion or 95.0 percent of the total. A far second was Collection, Purification and Distribution of Water with PHP22.1 billion (4.1%). Steam and Hot Water Supply establishments spent the least with PHP5.3 billion (1.0%).

Revenue per Cost

Revenue per cost ratio for the sector in 2009 was recorded at 1.49, this means that for every peso spent, PHP1.49 was realized in terms of revenue. Among industries, Collection, Purification and Distribution of Water had the highest revenue per cost ratio of 1.91, followed by Steam and Hot Water Supply with a ratio of 1.77. On the other hand, Generation, Collection and Distribution of Electricity had the least revenue per peso cost ratio of 1.47.

Value Added

Value added produced by all Electricity, Gas and Water Supply establishments in 2009 was estimated at PHP318.6 billion.

Among the industries, Generation, Collection and Distribution of Electricity generated the biggest share to value added accounting for 88.5 percent (PHP281.8 billion) of the total. Value added of Collection, Purification and Distribution of Water amounting to PHP32.8 billion accounted for 10.1 percent of the total. Steam and Hot Water Supply contributed the lowest value added with PHP4.5 billion (1.4%).

Labor Productivity

Labor productivity, defined as value added per worker, was estimated at PHP4.4 million per worker. The highest labor productivity was recorded by Generation, Collection and Distribution of Electricity with PHP6.2 million per worker. This was followed by Steam and Hot Water Supply with PHP4.2 million per worker, while the lowest was for Collection, Purification and Distribution of Water with PHP1.3 million per worker. Figure 5 shows the distribution of value added per worker of Electricity, Gas and Water Supply sector for all employment sizes by industry group in 2009.

Gross Addition to Tangible Fixed Assets

Gross addition to tangible fixed assets, defined as capital expenditure less sale of fixed assets, acquired by Electricity, Gas and Water Supply sector was valued at PHP23.0 billion.

Among industries, Generation, Collection and Distribution of Electricity recorded the highest gross addition to fixed assets amounting to PHP14.8 billion or 64.3 percent of the total. Collection, Purification and Distribution of Water followed next with PHP7.9 billion (34.3%). Steam and Hot Water Supply registered the lowest gross addition to fixed assets worth PHP306.9 million (1.4%).

Change in Inventory

Change in inventory, defined as the value of ending inventory less the beginning inventory, was estimated at PHP2,324.6 thousand. Generation, Collection and Distribution of Electricity had the highest change in inventory with PHP2,233.7 thousand or 96.1 percent of the total. Steam and Hot Water Supply and Collection, Purification and Distribution of Water distantly followed with PHP59.7 thousand (2.6%) and PHP31.1 thousand (1.3%), respectively.

Subsidies

The government provided PHP2.3 billion worth of subsidies to support the business operation of Electricity, Gas and Water supply establishments.

By industry group, Generation, Collection and Distribution of Electricity and, Collection, Purification and Distribution of Water received subsidies from government in the amount of PHP2.2 billion (95.5%) and PHP103 million (4.5%), respectively. On the other hand, Steam and Hot Water Supply did not receive any subsidy from the government.

TECHNICAL NOTES

Introduction

The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is a continuing activity of the National Statistics Office (NSO). It is a nationwide undertaking which aims to provide data on the structure and trends of economic activities in the country.

The data collected from 2009 ASPBI serves as reliable bases upon which the government and the private sector can formulate policies and evolve economic development plans. Specifically, the survey results are used in constructing the national and regional income accounts of the Philippine economy; formulating development strategies and monitoring plans/policies in the attainment of national and regional goals; determining and comparing regional economic structures and performance; valuating conditions of the economy, employment and income perspective in order to make more informed decisions; evaluating business options, assessing opportunities for new investments and estimating market shares of industries; and providing updates for the frame of establishments.

Legal Authority

The legal authority for the conduct of the economic census and surveys is provided by various legislative acts and directives.

Commonwealth Act No 591 of 1940 is the law that created the Bureau of Census and Statistics (now the National Statistics Office). This organic law empowers the Bureau, among other things, to prepare for and undertake all census of population, agriculture, industry and commerce.

Confidentiality of Information. Section 4 of CA 591 states that: "Data furnished to the Bureau of Census and Statistics . . . shall not be used as evidence in court . . .; nor shall such data or information be divulged to any person except to authorized employees of the Bureau of Census and Statistics...". This is to assure local businesses and industries operating in the country that as required by law, all data reported to NSO will be kept strictly confidential. All of the survey data products that will be published will include only summary information, and these will not identify any individual business.

E.O. 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1,1996) approves the ASPBI, and other major censuses and surveys of the agency, as designated statistical activities of the Government whose data are considered critical in the formulation of economic development plans and policy decision making.

Other legislative acts and presidential directives, as follows, were enacted to strengthen the mandate of NSO.

PD 418 (Reconstituting the Bureau of the Census and Statistics, to be known as National Census and Statistics Office, under the administrative supervision of the National Economic and Development Authority, dated March 20, 1974)

EO 121 (Reorganization Act of the Philippine Statistical System, dated August 4, 1987)

EO No 5 (Strengthening the National Statistics Office, dated July 29, 1998).

Scope and Coverage

The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the amended 1994 Philippine Standard Industrial Classification (PSIC), namely:

• Agriculture, Hunting and Forestry (A)
• Fishing (B)
• Mining and Quarrying (C)
• Manufacturing (D)
• Electricity, Gas and Water Supply (E)
• Construction (F)
• Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles and Personal and Household Goods (G)
• Hotels and Restaurants (H)
• Transport, Storage and Communications (I)
• Financial Intermediation (J)
• Real Estate, Renting and Business Activities (K)
• Private Education (M)
• Health and Social Work (N)
• Other Community, Social and Personal Service Activities (O)

The scope of the survey was confined to the formal sector of the economy, which consists of the following:

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorship with employment of 10 and over
• Single proprietorships with branches

Unit of Enumeration

Like all other establishments surveys conducted by the NSO, the 2009 ASPBI unit of enumeration is the establishment. The establishment is defined as a unit which engages, under a single ownership or control, in one, or predominantly one kind of activity at a single fixed location.

In actual practice, however, there are difficulties in applying the ideal definition so the establishment is defined in operational terms to take into account the organization and record-keeping practices of certain sectors by making the single location and activity criteria more flexible. This necessitates the use of the kind-of-activity unit for certain sectors as the single location restriction is eliminated.

Taxonomy of Establishments

An establishment may be classified according to its: economic organization, legal organization, industry, employment size, and geographic location.

The Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.

The Legal Organization (LO) refers to the legal form of the economic entity which owns the establishment. An establishment may be Single Proprietorship, Partnership, Government Corporation, Stock Corporation, Non-Stock Corporation, and Cooperative.

According to industrial classification, the main activity of an establishment is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC, based on the International Standard Industrial Classification (ISIC) Rev3.1 was used to classify economic units according to their economic activities.

The size of an establishment is determined by its total employment (TE). Listed below are the employment size classifications and the corresponding codes used in the 2009 ASPBI.

Establishments are also classified by geographic area using the Philippine Standard Geographic Classification (PSGC). The PSGC is a systematic classification and coding of geographic areas of the Philippines. It contains the latest updates on the official composition of regions, provinces, cities, municipalities and barangays in the Philippines. The 2009 ASPBI adopted the PSGC as of December 31, 2009.

The 2009 ASPBI Questionnaires

The 2009 ASPBI utilized five types of questionnaires. These questionnaires were designed after taking into consideration the requirements of the main users. The questionnaires are listed below:

Establishments were asked to provide the following information:

Frame of Establishments

The 2009 ASPBI sampling frame was extracted from the 2009 List of Establishments (LE).

There were about 781,000 establishments in operation in the country in 2009. Distribution of these establishments reveals that about 609,000 establishments are classified as the informal sector and the remaining 172,000 establishments are classified as the "formal" sector. However, around 90% (154,000) of establishments classified in the "formal" sector are within the coverage of the 2009 ASPBI and thus, comprise the frame of the survey.

Sampling Design

The 2009 ASPBI used stratified systematic sampling with five-digit PSIC serving as first stratification variable and TE as the second stratification variable.

Geographic Domain. For establishments with TE of 20 and over, the geographic domain were the regions. For establishments with TE of less than 20, the whole country served as the geographic domain.

Industry Domain. The industry domain comprised 1,036 sub-classes (5-digit PSIC), regardless of employment size.

Employment Stratum. Some employment sizes were combined to comprise an employment stratum and were limited to only five strata for all sectors. The basic consideration for grouping was the concentration of establishments in the employment sizes.

Within the industry domains for each sector, the establishments were grouped according to the following employment stratum:

Sample size. For establishments with employment of less than 20, the sample size was obtained by applying the specific sampling rates for each employment stratum of the industry domain at the national level. The total sample size for establishments with employment of less than 20 was 11,466 establishments. For the Electricity, Gas and Water Supply sector, the estimated total sample size for TE of less than 20 was 29.

For establishments with employment of 20 and over, the sample size was obtained by applying the specific sampling rates for the i^th employment stratum in the j^th industry stratum at the national level and allocating to the regions. The aggregate sample size for employment of 20 and over in all sectors was 17,242 establishments. For the Electricity, Gas and Water Supply sector, the estimated sample size for TE of 20 and over was 444.

Response Rate

The overall response rate for Electricity, Gas and Water Supply sector is 95.35 percent or 451 out of 473 establishments. These include receipt of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Concepts and Definitions of Terms

Book value is the initial value or acquisition cost of tangible fixed assets less accumulated depreciation.

Capital expenditures for tangible 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.

Change in inventories is equivalent to the total value of inventories at the end of the year less the value of inventories at the beginning of the year.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser 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.

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and transmission and distribution costs of electricity and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

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 is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment), net of discounts, and allowances, including duties and taxes but excluding subsidies.

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.

Social contributions paid by employers refer to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAG-IBIG.

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.

Total employment is the number of persons who worked in for the establishment as of November 15, 2009.

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, receiving pure commissions only, and workers on indefinite leave.

Unpaid workers are persons working for at least one third of the working time normal to the establishment and do not receive regular pay.

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.

Value added is gross output less intermediate cost. Gross output for the Electricity, Gas and Water Supply sector is value of output plus non-industrial services done for others (except rent income from land). Intermediate input is intermediate cost plus non-industrial services done by others (except rent expense for land) and other costs.

Value of output represents the sum of the revenue from main activity (value of electricity, steam and water sold), receipts from industrial services, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.

Source:  National Statistics Office
             Manila, Philippines