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2010 Annual Survey of Philippine Business and Industry - Electricity, Gas, Steam and Air Conditioning Supply Sector : Final Results

Reference Number: 2013-16
Release Date: 06 February 2013

 

Electric power generation, transmission and distribution dominates the sector

Final results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide covered a total of 231 electricity, gas, steam and air conditioning supply establishments (Table 1). 

Electric power generation, transmission and distribution recorded a total of 225 establishments or 97.4 percent of the total.  Steam, air conditioning supply and production of ice comprised the remaining number of establishments with only 6 or 3.6 percent of the total. No establishment was recorded in manufacture of gas; distribution of gaseous fuels through mains.  Figure 1 shows the percentage distribution of all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2010.

Among regions, most of the electricity, gas, steam and air conditioning supply establishments were located in Central Luzon with 31 or 13.4 percent of the total. CALABARZON with 24 establishments (10.4%) placed second, followed closely by Cordillera Administrative Region (CAR) with 22 establishments (9.5%) and Central Visayas with 21 establishments (9.1%). On the other hand, Zamboanga Peninsula and Autonomous Region in Muslim Mindanao (ARMM) recorded the lowest number with only 6 establishments (2.5 %) each.

 

Electric power generation, transmission and distribution employs 46,954 workers

Total employment generated by the electricity, gas, steam and air conditioning supply sector reached 47,998 in 2010.

By industry, electric power generation, transmission and distribution employed majority of the workers numbering 46,954 or 97.8 percent of the total.  On the other hand, steam, air conditioning supply and production of ice hired only 1,044 or 2.2 percent of the total employment.  Figure 2 displays the distribution of employment for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2010.

The average number of workers per establishment for the sector was recorded at 208. Electric power generation, transmission and distribution had an average of 209 workers per establishment, while steam, air conditioning supply and production of ice recorded 174 workers (Table 1a).

Among regions, National Capital Region (NCR) employed the bulk of workers with 12,348 accounting for 25.7 percent of the total. Central Luzon, despite having the highest number of establishments, ranked a far second with 5,566 workers (11.6%). CALABARZON followed next with 4,746 workers (9.9%). ARMM hired the lowest number of workers with only 621 or 1.3 percent of the total (Table 1).

 

Employees of steam, air conditioning supply and production of ice are the highest paid

Total compensation paid by the sector to its employees amounted to PHP25.9 billion, indicating an average annual compensation of PHP539,900 per employee.

By industry, employees of steam, air conditioning supply and production of ice received an average annual compensation amounting to PHP734,001 per employee.  Employees of electric power generation, transmission and distribution recorded an average annual compensation of PHP535,584 per employee.  Figure 3 illustrates the average annual compensation of employees for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2010.

Employees in CALABARZON and NCR received the highest annual compensation with respective amount of PHP914,919 and PHP904,444 per employee. Those employed in Davao Region earned an average annual compensation of PHP518,652. Employees in ARMM received the lowest average remuneration of PHP115,754 (Table 1a).

 

Value of output amounts to PHP748.3 billion

In 2010, total value of output produced by all electricity, gas, steam and air conditioning supply establishments was estimated at PHP748.3 billion. 

Electric power generation, transmission and distribution produced a total of PHP739.5 billion or 98.8 percent of the total value of output. On the other hand, steam, air conditioning supply and production of ice generated the least with PHP8.8 billion or 1.2 percent of the total.  Figure 4 shows the percentage distribution of value of output for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2010.

Establishments in NCR produced the highest output value among regions amounting to PHP361.8 billion or 48.4 percent of the total. This was followed by establishments in CALABARZON which generated an output value of PHP184.6 billion or 24.7 percent. Central Luzon followed next with output value of PHP56.1 billion or 7.5 percent of the total (Table 1).

 

Total cost incurred is PHP577.6 billion

Total cost, excluding compensation, incurred in 2010 by all electricity, gas, steam and air conditioning supply establishments reached PHP577.6 billion (Table 1).

By industry, electric power generation, transmission and distribution incurred PHP571.9 billion or 99.0 percent while steam, air conditioning supply and production of ice spent only PHP5.7 billion or 1.0 percent of the total cost.

 

Revenue per cost ratio stands at 1.48

The ratio of total revenue to total cost in 2010 for the electricity, gas, steam and air conditioning supply sector was recorded at 1.48. This means that for every peso spent PHP1.48 was realized in terms of revenue.

Steam, air conditioning supply and production of ice industry registered a revenue per cost ratio of 1.63 while electric power generation, transmission and distribution stood at 1.48 (Table 1a).

 

Value added reaches PHP315.8 billion

Value added produced by all establishments was estimated at PHP315.8 billion.

Electric power generation, transmission and distribution establishments’ contribution to total value added was recorded at PHP311.1 billion or 98.5 percent. The remaining PHP4.7 billion or 1.5 percent of the total value added was produced by steam, air conditioning supply and production of ice industry (Table 1).

Regionwide, electricity, gas, steam and air conditioning supply establishments located in NCR generated the biggest value added estimated at PHP217.1 billion (68.7%) in 2010. This was followed by CALABARZON with PHP36.4 billion or 11.5 percent and Ilocos Region with value added of PHP18.4 billion or 5.8 percent (Table 1).

 

Labor productivity is PHP6.6 million per worker

Labor productivity, defined as value added per worker, was valued at an average of PHP6.6 million per worker for the sector.

Labor productivity of establishments engaged in electric power generation, transmission and distribution was estimated at PHP6.6 million per worker while it was PHP4.4 for steam, air conditioning supply and production of ice (Table 1a). Figure 5 displays the labor productivity for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2010.

By region, workers in NCR were the most labor productive valued at PHP17.6 billion, followed by workers in CALABARZON and Ilocos Region with PHP7.7 billion and PHP6.9 billion, respectively. Workers in MIMAROPA were the least productive with PHP158.4 million per worker (Table 1a).

 

Gross addition to tangible fixed assets is estimated at PHP9.6 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, acquired by all establishments was estimated at PHP9.6 billion.

Establishments engaged in electric power generation, transmission and distribution recorded a gross addition to fixed assets amounting to PHP8.9 billion or 93.3 percent of the total while establishments engaged in steam, air conditioning supply and production of ice acquired a total of only PHP0.6 billion or 6.7 percent of the total (Table 1).

 

Electric power generation, transmission and distribution establishments receive PHP1.7 billion worth of subsidies

Total subsidies provided by the government to support the business operation of the sector reached a total of PHP1.7 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 final results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) for the Electricity, Gas, Steam and Air Conditioning Supply sector.

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.

National data are presented at the industry sub-class or 5-digit 2009 PSIC. Industries at the regional level were aggregated to ensure confidentiality of individual establishment’s data. Hence, totals only are presented for the region.

 

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

Electricity, Gas, Steam and Air Conditioning Supply establishments in the formal sector was covered on a 100 percent basis because of the relatively small number of their population.

Response Rate

The response rate is 95.1 percent (212 out of 223 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.

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.

 

Electricity, Gas, Steam and Air Conditioning Supply by Year Published

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