Central Luzon leads the regions in terms of number of establishments
The 2017 Annual Survey of Philippine Business and Industry (ASPBI) final results showed that a total of 299 establishments in the formal sector of the economy were engaged in Electricity, Gas, Steam and Air Conditioning Supply. This represents a 12.8 percent increase from the 265 total establishments reported in 2016. (Table A)
All establishments of the sector were engaged in electric power generation, transmission and distribution industry.
Central Luzon led the regions with 40 establishments or 13.4 percent share to total. This was followed by CALABARZON and Central Visayas with 31 (10.4%) and 30 (10.0%) establishments, respectively. These top three regions accounted for more than one-third (33.8%) of the total establishments for the sector. On the other hand, Autonomous Region in Muslim Mindanao (ARMM) recorded the lowest count with only four (1.3%) establishments. (Figure 1)
NCR employs the highest number of workers
The sector employed a total of 46,819 workers in 2017, a decline of 1.2 percent from 47,387 workers recorded in 2016. (Table A)
Almost all or 46,798 workers were paid employees and only 21 workers were either working owners or unpaid workers. (Table 1 and 2)
Among regions, the National Capital Region (NCR) employed the highest number of workers with 6,142 or 13.1 percent share to total. Central Luzon placed second (5,483 or 11.7%), followed by CALABARZON (5,116 or 10.9%). On the other hand, ARMM (358 or 0.8%) recorded the lowest number of workers. (Figure 2)
The average number of workers per establishment for the sector was recorded at 157. NCR, likewise, posted the highest average of 558 workers per establishment. (Table 2a)
NCR pays the highest average annual compensation
In 2017, the total annual compensation paid to employees in the sector amounted to PHP35.9 billion. This translates to an average annual compensation of PHP766,582 per paid employee, which is 1.8 percent higher than the average annual compensation of PHP752,760 per employee in 2016. (Table A)
At the regional level, employees in NCR received the highest average annual pay of PHP1.4 million per employee. This was followed by CALABARZON and Ilocos Region with an average annual compensation of PHP1.2 million and PHP867,385 per employee, respectively. Meanwhile, employees in ARMM received the lowest average annual compensation of PHP165,760 per employee. (Figure 3)
CALABARZON generates the highest value of output and incurs the highest intermediate expense
In 2017, the total value of output generated by Electricity, Gas, Steam and Air Conditioning Supply establishments amounted to PHP859.1 billion. This represents an increase of 12.6 percent from the value of output generated in 2016, amounting to PHP762.7 billion. (Table A)
By region, CALABARZON generated the highest output value which was estimated at PHP217.5 billion or more than one-fourth (25.3%) of the total. NCR and Central Luzon followed with respective output values of PHP171.7 billion (20.0%) and PHP123.6 billion (14.4%). (Figure 4)
Meanwhile, total intermediate expense incurred by the sector amounted to PHP567.8 billion in 2017. This represents a 14.2 percent increase from the reported intermediate expense of PHP497.1 billion in 2016. (Table A)
More than one-fourth (27.3%) of the sector’s total intermediate expense was incurred by establishments in CALABARZON. This was followed by NCR (20.8%) and Central Luzon (14.2%). (Figure 4)
CAR records the highest returns
Income per peso expense ratio for the sector in 2017 was recorded at 1.20, a 0.8 percent slump from the income per peso expense ratio of 1.21 in 2016. It shows that for every peso spent in 2017, PHP1.20 was realized in terms of income. (Table A)
Across regions, Cordillera Administrative Region (CAR) registered the highest return with income per expense ratio of 1.63. Cagayan Valley and Ilocos Region followed with 1.52 and 1.36 income per peso expense ratios, respectively. (Table 2a)
CALABARZON contributes the biggest share in value added
Value added generated by all establishments in the sector reached PHP249.1 billion in 2017, an increase of 9.1 percent from the PHP228.3 billion reported in 2016. (Table A)
At the regional level, CALABARZON contributed the biggest share (20.8%) followed by NCR (18.8%) and Central Luzon (15.5%). (Table 2)
CALABARZON as the most productive region
Labor productivity, which is the ratio of value added to total employment, was estimated at PHP5.3 million per worker. This was higher by 10.4 percent from the recorded labor productivity of PHP4.8 million per worker in 2016. (Table A)
The highest labor productivity of PHP10.1 million per worker was recorded in CALABARZON. NCR and Central Luzon placed second and third, generating a labor productivity of PHP7.6 and PHP7.0 million per worker, respectively. (Figure 5)
Davao acquires the highest gross addition to tangible fixed assets
Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP66.2 billion in 2017, higher by 106.3 percent from the previous year’s record of PHP32.1 billion. (Table 1)
Davao acquired the highest gross addition to tangible fixed assets (PHP26.6 billion or 40.2%) at the regional level. This was followed by Northern Mindanao and CALABARZON with PHP6.3 billion (9.4%) and PHP6.2 billion (9.4%), respectively. (Table 2)
CALABARZON receives the highest subsidy
Total subsidies provided by the government to support the business operations of the sector was estimated at PHP5.5 billion in 2017. This amount was higher by 7.6 percent from the PHP5.1 billion recorded in 2016. (Table 1)
Among regions, CALABARZON received the highest subsidy of PHP1.5 billion or 26.8 percent share to total. This was followed by Bicol with subsidies amounting to PHP1.0 billion (19.0%) and Caraga with PHP0.8 billion (14.8%). (Table 2)
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all the Electricity, Gas, Steam and Air Conditioning Supply establishments (Sector D).
The 2017 ASPBI is 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 2017.
The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.
Establishment Data Management System (EDMS) is still utilized in the decentralized processing of survey returns in the provinces as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
The conduct of the 2017 ASPBI is authorized under Republic Act 10625, known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2017 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 of Motor Vehicles, and 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)
However, three (3) sectors of the 2009 PSIC are not covered. These are:
• Public Administration and Defense; Compulsory Social Security (Section O)
• Activities of Households as Employers; Undifferentiated Goods and Services Producing Activities of Households for Own Use (Section T)
• Activities of Extra-territorial Organization and Bodies (Section U)
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
Hence, the 2017 ASPBI covered only the following economic units:
• All establishments with total employment (TE) of 10 or more; and
• All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
Frame of Establishments
The frame for the 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishment frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 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.
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.
Size of an establishment was determined by its total employment (TE) as of specific date. TE refers to the total number of persons who works in or for the establishment. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time, including seasonal workers. Included also are persons on short-term leave such as those on sick, vacation or annual leaves and on strike.
Geographic Classification refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of 31 December 2015 was used for the 2017 ASPBI.
The 2017 ASPBI used stratified systematic sampling with 3-digit or 5-digit PSIC serving as the industry strata and employment size as the second stratification variable.
All establishments in the formal sector for the Electricity, Gas, Steam and Air Conditioning Supply sector were covered on a 100 percent or on a certainty basis because of their relatively small number.
The total of a characteristic (Xp) in an industry domain in each geographic domain (region) is
p = 1, 2…17 regions (geographic domains)
xpj = value of the jth establishment in an industry domain within each region
j = 1, 2, 3…mp establishments
mp = number of establishments in an industry domain within each region
The total of a characteristics for the national level by industry domain (X) was obtained by aggregating separately the estimates (Xp) for the particular industry domain from all the regions.
Response rate for all Electricity, Gas, Steam and Air Conditioning Supply establishments was 80.2 percent (299 out of 373 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out of scope establishments.
Of the total responses, 35 establishments responded online.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out of scope and out of business in 2017.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
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.
Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s 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.
E-Commerce refers to the selling of products or services over electronic systems such as the 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.
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.
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.
Expense refers to cost incurred by the establishment in an enterprise’s effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or 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.
Intermediate expense are expenditures incurred in the production of goods such as materials and supplies used; fuels, lubricants, oils and greases, electricity and water purchased, and industrial services done by others.
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 refer to special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry.
Total employment is the number of persons who worked in for the establishment as of 15 November 2017.
Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.
Value added is gross output less intermediate input. Gross output 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 all other expense.
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.