Electric power generation, transmission and distribution dominates the sector

Based on the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, there were 217 establishments with total employment (TE) of 20 and over engaged in electricity, gas, steam, and air conditioning supply.

Among the industry groups, electric power generation, transmission and distribution reported a total of 211 establishments or 97.2 percent of the total. Steam, air conditioning supply and production of ice comprised the remaining number of establishments with only 6 or 2.8 percent of the total. No establishment was engaged in manufacturing of gas and distribution of gaseous fuel through mains. Figure 1 shows the distribution of electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over by industry group in 2013.

By region, Central Luzon recorded the highest number of establishments with 28 or 12.9 percent of the total, followed by CALABARZON with 22 or 10.1 percent of the total. Central Visayas ranked third with 21 establishments (9.7%). On the other hand, Autonomous Region in Muslim Mindanao (ARMM) recorded the least count with only 5 establishments (2.3%).

Figure 2 shows the regional distribution of electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over in 2013.

Electric power generation, transmission and distribution employs 44,651 workers

Electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over employed a total of 45,785 in 2013.

Electric power generation, transmission and distribution hired a total of 44,651 workers accounting for 97.5 percent of the total. The remaining 1,134 workers (2.5%) were employed by steam, air conditioning supply and production of ice. Figure 3 shows the distribution of employment for electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over by industry group in 2013.

National Capital Region (NCR) employed the most number of workers among regions with 9,713 or 21.2 percent of the total, followed by Central Luzon with 4,919 workers (10.7%). Completing the top three regions with the most number of workers is CALABARZON with 4,362 (9.5%).

The average number of workers per establishment for the sector was recorded at 211. Electric power generation, transmission and distribution reported 212 workers per establishment, while steam, air conditioning supply and production of ice had 189 workers per establishment.

Employees of steam, air conditioning supply and production of ice earn an average annual compensation of PHP1.5 million

Total compensation paid in 2013 amounted to PHP34.0 billion, translating to an average annual compensation of PHP743,243 per employee.

Employees in steam, air conditioning supply and production of ice received an average annual compensation of PHP1,535,614 while it was PHP723,120 for employees in electric power generation, transmission and distribution. Figure 4 shows the average annual compensation of employees for electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over by industry group in 2013.

At the regional level, employees in CALABARZON received the highest average annual pay of PHP1,359,812. This was followed by employees in NCR receiving an average annual compensation of PHP1,251,434. Eastern Visayas which ranked third, reported an average annual pay of PHP795,510. Employees  in ARMM was the least paid among regions with an average annual pay of PHP195,419.

Electric power generation, transmission and distribution generates PHP735.4 billion value of output

Total value of output  generated  by  establishments  with TE of 20 and  over amounted to  PHP747.4 billion.

By industry, electric power generation, transmission and distribution produced the lion’s share amounting to PHP735.4 billion or 98.4 percent of the total value of output. On the other hand, steam, air conditioning supply and production of ice accounted for a mere 1.6 percent (PHP12.0 billion) of the total. Figure 5 shows the distribution of value of output for electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over by industry group in 2013.

Among  regions,  CALABARZON  accounted for the  biggest  output  valued  at  PHP216.4 billion, comprising 29.0 percent of the total value of output. This was followed closely by NCR with an output value of PHP200.4 billion (26.8%). Central Luzon came in third with PHP86.0 billion (11.5%). ARMM  generated  the least value of output estimated at PHP964.4 thousand (0.1%).

Total expense amounts to PHP650.1 billion

Total expense, including compensation, summed up to PHP650.1 billion in 2013.

At  the  industry level,  electric  power  generation, transmission  and  distribution  incurred PHP640.7 billion or 98.6 percent while steam, air conditioning supply and production of ice spent only PHP9.4 billion or 1.4 percent of the total expense.

CALABARZON spent the highest among the regions with PHP193.5 billion (29.8%), followed closely by NCR spending PHP175.4 billion (27.0%). Central Luzon placed a far third with PHP74.1 billion (11.4%). ARMM was the least spender at PHP1.2 billion (0.2%)

Income per expense ratio stands at 1.21

Income per total expense ratio for establishments with TE of 20 and over in 2013 was recorded at 1.21, indicating that for every peso spent PHP1.21 was realized in terms of income.

Steam, air conditioning supply and production of ice stood at 1.46 whereas electric power generation, transmission and distribution income per expense ratio was recorded at 1.20.

Establishments in Cordillera Administrative Region (CAR) registered the highest return at 1.80, followed by Ilocos Region and Cagayan Valley with income per expense ratio of 1.56 and 1.46, respectively. Among the regions, only ARMM had an income-expense ratio of less than 1.00 posted at 0.84.

Value added reaches PHP210.1 billion

Value added generated by establishments with TE of 20 and over was estimated at PHP210.1 billion in 2013.

Electric power generation, transmission and distribution accounted for a value added amounting to PHP203.0 billion or 96.6 percent of the total. The remaining PHP7.2 billion (3.4%) was produced by steam, air conditioning supply and production of ice.

NCR led the regions in terms of value added estimated at PHP55.3 billion or 26.3 percent  of  the  total. This was followed  by  CALABARZON  with  PHP49.0 billion (23.3%)  and  Central  Luzon  with  PHP 22.5 billion (10.7%).

Labor productivity is PHP4.6 million

Labor productivity, defined as value added per worker, was estimated at PHP4.6 million per worker for establishments with TE of 20 and over.

By industry group, labor productivity of steam, air conditioning supply and production of ice was valued at PHP6.3 million while it was PHP4.5 million for electric power generation, transmission and distribution. Figure 6 shows the labor productivity for electricity, gas, steam, and air conditioning supply sector with TE of 20 and over by industry group in 2013.

Among regions, CALABARZON was the most productive, generating PHP11.2 million per worker. This was followed by CAR and Cagayan Valley with PHP7.5 and PHP5.9 million per worker, respectively.

Gross addition to tangible fixed assets reaches PHP28.7 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, reached PHP28.7 billion in 2013.

Electric power generation, transmission and distribution with PHP26.6 billion worth of gross addition to tangible fixed assets accounted for 92.7 percent of the total. Whereas, steam, air conditioning supply and production of ice acquired only PHP2.1 billion or 7.3 percent of the total.

Total subsidies received amounts to PHP9.2 billion

Total  subsidies  provided  by  the  government  to  support  the  business  operation  of  electricity, gas, steam,  and  air conditioning  supply industry amounted to PHP9.2 billion.

All the subsidies received by the sector went to the electric power generation, transmission and distribution industry.

TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2013 ASPBI for the electricity, gas, steam, and air conditioning supply establishments with total employment of 20 and over.

The 2013 ASPBI is a forerunner of the 2010 ASPBI and one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2013.

The survey was conducted nationwide in September 2014 with the year 2013 as the reference period of data, except for employment which is as of November 15, 2013. 

Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) and at the regional level.   

Legal Authority

The conduct of the 2013 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2013 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 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

Frame of Establishments

The frame for the 2013 ASPBI was extracted from the 2013 List of Establishments (LE). The estimated number of establishments in operation in the country in 2013 totaled to 941,000. About 263,000 establishments (28.0% of the total establishments) belong to the formal sector of which 229,000 (87.0%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2013 ASPBI is the establishment. An 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.

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

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.

Legal Organization 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.

The industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue.  The 2009 PSIC was utilized to classify economic units according to their economic activities.

The size of an establishment is determined by its total employment (TE) as of specific date. 

Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification.

Methodology

Electricity, gas, steam, and air conditioning supply establishments with TE of 20 and over classified in the formal sector were covered on a 100 percent or on a certainty basis because of their relatively small number.

The estimate of the total of a characteristic  for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

where:

p = 1, 2,..., 17 regions (geographic domains)

x_pj = value of the j^th establishment with TE of 20 and over in an industry domain within each region

j = 1, 2, 3, …, m_p establishments

m_p = number of establishments with TE of 20 and over in an industry domain within each region

National level estimate of a characteristics by industry domain  was obtained by aggregating separately the estimates  for the particular industry domain from all the regions.

Response Rate

Response  rate  for  the  electricity, gas, steam, and  air  conditioning  supply  establishments  with TE of 20 and over was 83.6 percent (224 out of 268 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, consolidated, reports of closed, moved out or out of scope establishments. 

Reports of the non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources.  However, reports of establishments which were found to be duplicates and out of business in 2013, were not imputed.

Limitation of Data

Only the formal sector was covered in the survey.

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, 2013.

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 is the sum of 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.

Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.

E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

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.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Intermediate expense are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, 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 input. Gross output for the electricity, gas, steam and air conditioning supply sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and other expenses.

Value of output represents the sum of the receipts from revenue from main activity, income from 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.