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2006 Census of Philippine Business and Industry (CPBI) - Electricity, Gas and Water Supply for Establishments with Average Total Employment of 20 and Over : Preliminary Results

Reference Number: 397
Release Date: 12 January 2009

Majority of establishments are engaged in electricity generation, collection and distribution

The 2006 Census of Philippine Business and Industry (CPBI) reported a total of 466 Electricity, Gas and Water supply establishments with average total employment (ATE) of 20 and over (Table 1).
 

Of the total establishments, majority (52.1%) was engaged in the generation, collection and distribution of electricity. About 46.6 percent were involved in the collection, purification and distribution of water while only 1.3 percent was steam and hot water supply plants. None of the establishments was engaged in the manufacture of gas and distribution through a system of mains. Figure 1 shows the distribution of establishments by industry class for Electricity, Gas and Water supply establishments with ATE of 20 and over.
 

By region, Central Luzon accounted for the most number of establishments with 81 or 17.4 percent of the total number of establishments with ATE of 20 and over, while CALABARZON followed with 62 establishments (13.3%). National Capital Region (NCR), with only eight reported establishments, had the least (Table 2).
 

Electricity establishments generates the highest employment

Employment in Electricity, Gas and Water supply establishments with ATE of 20 and over reached a total of 62,867.
 

Among industries, electricity generation, collection and distribution employed the bulk accounting for 41,802 employees or 66.5 percent of total. Water collection, purification and distribution ranked a far second with 19,823 employees or 31.5 percent. Steam and hot water supply plants employed the least number of employees reaching only 1,242 or 2.0 percent. Figure 2 shows the distribution of employment by industry class for Electricity, Gas and Water supply establishments with ATE of 20 and over.
 

Regionwise, the biggest workforce was in CALABARZON with 8,589 workers or 13.7 percent of the total. NCR, although having the least number of establishments, ranked second with 8,100 workers (12.9%). Autonomous Region for Muslim Mindanao had the least number of workers with only 773 workers (1.2%).
 

Steam and hot water supply plants pays the highest compensation

In 2006, total compensation paid amounted to Php20.6 billion, translating to an average annual earnings per employee amounting to Php327,473.
 

Across industries, steam and hot water supply plants paid the highest compensation per employee with annual average compensation of Php713,820. Electricity generation, collection and distribution paid an annual compensation rate of Php344,294. Water collection, purification and distribution, however, paid the lowest average annual compensation amounting to only Php267,795. Figure 3 presents the average annual compensation of employees for Electricity, Gas and Water supply establishments with ATE of 20 and over.
 

Electricity establishments accounts for the lion's share in revenue

Total revenue earned by Electricity, Gas and Water supply establishments with ATE of 20 and over reached Php533.9 billion with electricity generation, collection and distribution establishments accounting for a lion's share of 92.1 percent to total revenue valued at Php491.8 billion. The revenue shares of water collection, purification and distribution and steam and hot water supply plants were 5.1 percent (Php27.1 billion) and 2.8 percent (Php15.0 billion), respectively.
 

Among regions, CALABARZON generated the highest revenue for Electricity, Gas and Water supply establishments with ATE of 20 and over amounting to PhP156.5 billion or 29.3 percent of the total revenue generated. This was followed by NCR with PhP115.5 billion (21.7%). MIMAROPA had the least revenue with PhP3.0 billion (0.6%).
 

Total cost amounts to P403.3 billion

Total costs incurred by electricity, gas and water establishments with ATE of 20 and over amounted to Php403.3 billion. Electricity generation, collection and distribution establishments being the biggest earner was also the biggest spender at Php377.9 billion or 93.7 percent of the total .
 

Electricity establishments generates the highest output value

Total output value generated in 2006 by Electricity, Gas and Water establishments with ATE of 20 and over amounted to Php512.7 billion. Electricity generation, collection and distribution produced the biggest output value estimated at Php474.3 billion, accounting for 92.5 percent of the total. The shares of water collection, purification and distribution; and steam and hot water supply plants were 4.9 percent (Php25.2 billion) and 2.6 percent (Php13.1 billion), respectively. Figure 4 shows the distribution of value of output by industry class for Electricity, Gas and Water supply establishments with ATE of 20 and over..
 

Value added reaches Php174.1 billion

Total value added generated by Electricity, Gas and Water supply establishments with ATE of 20 and over was estimated at Php174.1 billion. .
 

Electricity generation, collection and distribution establishments registered the highest value added with Php151.8 billion or 87.2 percent of the total. The value added shares of water collection, purification and distribution; and steam and hot water supply plants were 9.1 percent (Php15.9 billion) and 3.7 percent (Php6.5 billion), respectively .
 

Among regions, CALABARZON registered the highest value added amounting to Php49.9 billion or 28.7 percent of the total value added. This was followed by Central Luzon Php25.2 billion (14.5%). MIMAROPA had the least share to value added worth Php0.6 billion (0.4%).
 

Electricity establishments are also the most productive among industries

The ratio of value added to total employment for establishments with ATE of 20 and over was recorded at Php2.8 million. This indicator was highest for steam and hot water plants registering at Php5.2 million. Figure 5 presents the ratio of value added to total employment by industry class for Electricity, Gas and Water supply establishments with ATE of 20 and over.
 

Gross additions to fixed assets amounts to Php18.1 billion

Gross additions to fixed assets for Electricity, Gas and Water supply establishments with ATE of 20 and over was recorded in 2006 to be Php18.1 billion.
 

Among industries, electricity generation, collection and distribution reported the largest gross addition to fixed assets amounting to Php10.8 billion or 60.0 percent of the total. This was followed by water collection, purification and distribution with gross addition to fixed assets worth Php6.1 billion (34.0%). On the other hand, steam and hot water supply plants had the least gross additions to fixed assets amounting to Php1.1 billion (6.0%).
 

Subsidies provided by the government reaches Php4.5 billion

Total subsidies provided by government to support the operation of electricity, gas, and water supply establishment with ATE of 20 and over reached Php4.5 billion. Electricity generation, collection and distribution establishments received Php4.4 billion or 98.5 percent of the total and the remaining 1.5 percent went to water collection, purification and distribution establishments. Steam and hot water supply plants did not receive any subsidy from the government in 2006.
 


TECHNICAL NOTES

Introduction

The 2006 Census of Philippine Business and Industry (CPBI) is a comprehensive collection, compilation, evaluation and analysis of data about economic activities of the country. It will be a vital source of information for establishing benchmark levels of measurement and comparison of national, regional and provincial economic growth for the year 2006.

The field operations for the 2006 CPBI was undertaken in 2007. It covered 14 sectors of the economy namely:
 

  • Agriculture, hunting and forestry
  • Fishing
  • Mining and quarrying
  • Manufacturing
  • Electricity, gas and water
  • Construction
  • Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods
  • Hotels and restaurants
  • Transport, storage and communications
  • Financial intermediation
  • Real estate, renting and business activities
  • Education
  • Health and social work
  • Other community, social and personal service activities.

The census was undertaken by authority of five (5) legislative acts and presidential directives namely: Commonwealth Act 591, Presidential Decree 418, Executive Order No 121, Executive Order No. 352 and Executive Order No.5.

This Special Release presents the preliminary results of the census for electricity, gas and water and forestry establishments with ATE of 20 and over.
 

2006 CPBI Design

Scope and Coverage

The unit of enumeration is the establishment. It is defined as an "economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location".

The scope of the census was confined to the formal sector and it consists of the following:
 

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

Specifically, the 2006 CPBI covers the following:
 

1. All establishments with Average Total Employment (ATE) 10 or more, and
2. All establishments with ATE less than 10, except those with Legal Organization (LO=1, single     proprietorship) and Economic Organization (EO=1, single establishment)

that are engaged in economic activities by sectors mentioned above.
 

Classification Systems

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

Economic Organization

Economic Organization relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
 

  • Single establishment is an one which has neither branch nor main office
  • Branch only is an establishment which has a separate main office located elsewhere.
  • Establishment and main office, both located in the same address and with branch/es elsewhere.
  • Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise.
  • Ancillary unit other than Main Office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments. Examples are warehouse of plants or wholesale establishments, repair shops or garage or terminals of transport establishments.

 

Legal Organization
 

The Legal Organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
 

  • Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator
  • Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishments name includes words such as Owners, Partners, Limited or LTD., Associates or ASSOCS.
  • Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., Incorporated or INC.
  • Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC
  • Cooperative - the establishment name includes words such as Cooperative or COOP

 

Size of Establishments

The size of the establishment is determined by its average total employment (ATE). The following are the employment size classification used in the 2006 CPBI:

 

ATE
Code

Average Total Employment

 

0

1-4

1

5-9

2

10-19

3

20-49

4

50-99

5

100-199

6

200-499

7

500-999

8

1000-1999

9

2000 and over

 

 

Industrial Classification

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 Philippine Standard Industrial Classification (PSIC) is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

Example: E - Electricity, gas and water
 

40 - Electricity, gas, steam and hot water supply
401 - Generation, collection and distribution of electricity products
4010 - Generation, collection and distribution of electricity
40100 - Generation, collection and distribution of electricity

Geographic Classification

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006. The PSGC contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

The geographic domains of the 2006 CPBI for establishments with average total employment (ATE) of 20 and over are the provinces, independent component cities, chartered cities and highly urbanized cities and municipalities. On the other hand, the geographic domains for establishments with ATE of less than 20 are the regions.

Hence, the samples of the 2006 CPBI with ATE 20 and over shall provide data for 17 administrative regions, 81 provinces, 39 cities and municipalities. For samples with ATE less than 20, the data that will be presented is limited only for regional levels.

Sampling Design

For Electricity, Gas and Water sector, all establishments were taken on a 100 percent basis.

Sample Size

Electricity, Gas and Water Supply sector sample size was 1,112 establishments broken down by ATE of 20 and over (477) and ATE of less than 20 (635).

Response Rate

The overall response rate for ATE of 20 and over is 87.8 percent or 419 out of 477. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. However, the effective response rate is 88.5 percent.

Concepts and Definitions of Terms

Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Employment is the number of persons who worked in or for this establishment as of November 15, 2006.

Average total employment is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.

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

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employees contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay, and other benefits.

Value of output represents the sum of the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods sold in the same condition as purchased less cost of goods sold, fixed assets produced on own account, and change in inventories of finished products and work-in-progress (ending less beginning). In the past surveys/censuses, estimation of value of output was not net of cost of goods sold but included change inventory (ending less beginning) of good for resale.

Cost of materials, fuels and electricity consumed and industrial services refers to expenses incurred in the production of goods and industrial services such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others and change in inventory of materials, supplies and fuels (beginning less ending). In the past surveys/censuses, cost of materials, fuels and electricity consumed and industrial services also include goods purchased for resale.

Census value added represents the difference between the value of output and total cost of materials, fuels and electricity consumed and industrial services.

Value added represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.

Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer, and revenue from products on a contractual basis from materials supplied by the establishment.

Cost refer to all expenses incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebated, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery, tool, furniture, fixtures, office equipment and other fixed assets.

Gross addition to fixed assets is the sum of costs of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

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

Inventories refer to the stocks of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

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

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.

 


Source:   National Statistics Office
                 Manila, Philippines