Electricity establishments dominate the sector

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 202 Electricity, Gas, Steam and Air conditioning supply establishments with total employment of 20 and over. Of the total count of establishments, 196 or 97 percent were engaged in electric power generation, transmission and distribution. The rest were in steam, air conditioning supply and production of ice. No establishment was recorded in manufacture of gas; distribution of gaseous fuels through mains. Figure 1 shows the percentage distribution of Electricity, Gas, Steam and Air Conditioning Supply establishments by industry group in 2010.

Among the regions, Central Luzon recorded the highest number of establishments at 30 or 14.9 percent of the total. This was followed by CALABARZON with 23 establishments (11.4%) and Central Visayas with 18 establishments (8.9%). The lowest number of establishments was recorded in the Autonomous Region in Muslim Mindanao with 5 establishments or 2.5 percent (Table 2).

Electricity establishments employ 45,795 workers

Electricity, Gas, Steam and Air Conditioning Supply establishments employed 46,830 workers in 2010.

By industry, electric power generation, transmission and distribution hired a total of 45,795 workers accounting for 97.8 percent of the total workforce. The remaining 1,035 workers (2.2%) were employed by steam, air conditioning supply and production of ice. Figure 2 shows the distribution of employment for Electricity, Gas, Steam and Air Conditioning Supply establishments by industry group in 2010.

The average number of workers per establishment for the sector was recorded at 232. Electric power generation, transmission and distribution had an average of 234 workers per establishment, while steam, air conditioning supply and production of ice recorded 173 workers per establishment (Table 1a).

At the regional level, National Capital Region (NCR) hired 11,665 workers accounting for 24.9 percent of the total. Central Luzon with 5,561 workers (11.9%) and CALABARZON with 4,725 workers (10.1%) ranked second and third, respectively (Table 2).

Employees of Steam, air conditioning supply and production of ice earn the highest

Total compensation paid by the Electricity, Gas, Steam and Air Conditioning Supply establishments in 2010 amounted to PHP25.8 billion, indicating an average annual compensation of PHP551,392 per employee.

By industry group, employees of steam, air conditioning supply and production of ice received an average annual compensation more than the national average at PHP740,384. On the other hand, employees of electric power generation, transmission and distribution had an average annual compensation of PHP547,121. Figure 3 displays the average annual compensation of employees for Electricity, Gas, Steam and Air Conditioning Supply establishments by industry group in 2010.

Value of output amounts to PHP746.5 billion

Total value of output generated by Electricity, Gas, Steam and Air Conditioning Supply establishments in 2010 was estimated at PHP746.5 billion. Of the total value of output, electric power generation, transmission and distribution accounted for a lion’s share of PHP737.7 billion or 98.8 percent. The remaining PHP8.8 billion or 1.2 percent was generated by steam, air conditioning supply and production of ice. Figure 4 shows the percentage distribution of value of output for Electricity, Gas, Steam and Air Conditioning Supply establishments by industry group in 2010.

By region, NCR generated PHP361.7 billion (48.5%) of the total output value. This was followed by CALABARZON with PHP184.4 billion (24.7%) and Central Luzon with PHP56.1 billion or 7.5 percent (Table 2).

Total cost incurred is PHP576.2 billion

Total cost in business operation, except compensation, incurred by Electricity, Gas, Steam and Air Conditioning Supply establishments was estimated at PHP576.2 billion (Table 1).

By industry group, electric power generation, transmission and distribution spent PHP570.5 billion or 99.0 percent of the total whereas steam, air conditioning supply and production of ice expended only PHP5.7 billion (1.0%).

Revenue per cost ratio stands at 1.48

The ratio of total revenue to total cost in 2010 was recorded at 1.48. This means that for every peso spent PHP1.48 was realized in terms of revenue. Among industries, steam, air conditioning supply and production of ice recorded a revenue per cost ratio of 1.63 while electric power generation, transmission and production of ice had 1.48 ratio (Table 1a).

Value added reaches PHP33.7 billion

Value added produced by Electricity, Gas, Steam and Air Conditioning Supply establishment was estimated at PHP314.9 billion. Of the total value added, PHP310.2 billion or 98.5 percent was generated by electric power generation, transmission and distribution. The remaining PHP4.7 billion or 1.5 percent was attributed to steam, air conditioning supply and production of ice (Table 1).

Electricity establishments are the most labor productive

Labor productivity, defined as value added per worker, was estimated at PHP6.7 million per worker. Workers of electric power generation, transmission and distribution were the most productive in terms of their contribution to value added with PHP6.8 million per worker. While the productivity of workers in steam, air conditioning supply and production of ice was valued at PHP4.4 million per worker. Figure 5 shows the labor productivity for Electricity, Gas, Steam and Air Conditioning Supply establishments by industry group in 2010.

Table 2a shows that among regions, the most labor productive were:

• NCR with PHP18.6 million per worker
• CALBARZON with PHP7.7 million per worker
• Ilocos Region with PHP6.9 million per worker

Gross addition to tangible fixed assets is valued at PHP9.5 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, acquired by Electricity, Gas, Steam and Air Conditioning Supply establishments was estimated at PHP9.5 billion. Electric power generation, transmission and distribution recorded a gross addition to fixed assets amounting to PHP8.8 billion representing 93.3 percent of the total. The remaining PHP0.6 billion or 6.7 percent was acquired by steam, air conditioning supply and production of ice (Table 1).

TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) for the Electricity, Gas, Steam and Air Conditioning Supply sector for establishments with total employment of 20 and over.

The 2010 ASPBI is one of the designated statistical activities of the National Statistics Office (NSO) with the objective of providing key measures on the levels, structure, trends, and performance of economic activities in the country. As such, the survey generates the most critical and essential statistics required for economic planning and policies.  It was conducted in April 2011 with year 2010 as the reference period of data, except for employment which is as of November 15, 2010.

The 2009 Philippine Standard Industrial Classification (PSIC) was adopted for the first time in this survey. This is the latest version of the classification of industries in the country which conforms with the International Standard Industrial Classification Revision 4 prescribed by the United Nations.

Data are presented at the industry group or 3-digit 2009 PSIC, national and regional levels.

Legal Authority

The conduct of the ASPBI is governed by legislative acts and presidential directives, mainly Commonwealth Act No. 591 which was approved on August 19,1940. Other legislative acts are:

• Presidential Decree No. 418
• Executive Order No. 121
• Executive Order No. 352
• Executive Order No. 5

Scope and Coverage

The 2010 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

• Agriculture, Forestry and Fishing (A)
• Mining and Quarrying (B)
• Manufacturing (C)
• Electricity, Gas, Steam, and Air Conditioning Supply (D)
• Water Supply; Sewerage, Waste Management and Remediation Activities (E)
• Construction (F)
• Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
• Transportation and Storage (H)
• Accommodation and Food service activities (I)
• Information and Communication (J)
• Financial and Insurance Activities (K)
• Real Estate Activities (L)
• Professional, Scientific and Technical Activities (M)
• Administrative and Support Service Activities (N)
• Education (P)
• Human Health and Social Work Activities (Q)
• Arts, Entertainment and Recreation (R)
• Other Service Activities (S)

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 2010 ASPBI unit of enumeration is the establishment.  The establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.

Methodology

Response Rate

The response rate is 95.8 percent (185 out of 193 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Concepts and Definitions of Terms

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.

Total employment is the number of persons who worked in for the establishment as of November 15, 2010.

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.

Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

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.

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.

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.

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

Value added is gross output less intermediate cost. Gross output for the electricity, gas, steam and air conditioning 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 receipts from revenue from main activity, industrial services done for others, goods sold in the same condition as purchased  less the cost of goods sold and  value of fixed assets produced on own account.

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

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

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.