Number of establishments grows by 16.7 percent
The preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) showed that there were 237 establishments with total employment (TE) of 20 and over engaged in electricity, gas, steam and air conditioning supply. This number was higher by 16.7 percent from the 203 establishments recorded in 2010. The growth in the number was due to 34 newly listed establishments in the 2012 List of Establishments.
Among the three industry groups of the sector, electric power generation, transmission and distribution recorded a total of 231 establishments or 97.5 percent of the total. Steam, air conditioning supply and production of ice comprised the remaining number of establishments with only 6 or 2.5 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 2012.
Regionwise, Central Luzon (Region III) recorded the highest number of establishments with 31 or 13.1 percent of the total. CALABARZON followed next with 26 or 11.0 percent of the total. On the other hand, Autonomous Region in Muslim Mindanao (ARMM) recorded the least count with only 5 establishments (2.1%).
Figure 2 shows the regional distribution of electricity, gas, steam and air conditioning supply establishments with TE of 20 and over in 2012.
Employment decreases by 0.3 percent
In 2012, electricity, gas, steam and air conditioning supply establishments with TE of 20 and over employed a total of 47,657, representing a decrease of 0.3 percent from the employment figure of 47,806 recorded in 2010.
At the industry level, electric power generation, transmission and distribution employed bulk of total employment with 46,391 workers (97.3%) and contracted by 0.8 percent from the employment of 46,762 in 2010. The remaining 2.7 percent (1,266) employed by steam, air conditioning supply and production of ice showed an increase of 21.3 percent from 1,044 workers in 2010. 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 2012.
National Capital Region (NCR), employed the most number of workers with 6,580 or 13.8 percent of the total. CALABARZON with 5,480 (11.5%) workers ranked second. Completing the top three regions with the most number of workers is Central Luzon with 5,193 (10.9%).
The average number of workers per establishment for the sector was recorded at 201 posting a decrease of 14.6 percent from the average of 235 workers in 2010. Steam, air conditioning supply and production of ice had 211 workers per establishments while electric power generation, transmission and distribution registered 201 workers per establishment.
Average annual pay increases by 21.2 percent
Total compensation paid in 2012 amounted to PHP31.2 billion, indicating an average annual compensation of PHP654,791 per employee. Compared to the average annual pay of PHP540,241 in 2010, average pay increased by 21.2 percent. In real terms, however, average pay per worker increased by only 12.3 percent.
Steam, air conditioning supply and production of ice paid an average annual compensation amounting to PHP1,887,860 while it was PHP621,159 for electric power generation, transmission and distribution industry. Figure 4 compares 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 2012 and 2010.
By region, employees in NCR received the highest average annual pay of PHP1,237,381, experiencing 27.8 percent increase in real terms from PHP905,169 received in 2010. This was followed by employees in CALABARZON receiving an average annual compensation of PHP1,009,559 with a 10.3 percent increase from PHP915,655 in 2010. In real terms this was equivalent to PHP777,781 with a 2.3 percent increase from PHP760,510 in 2010. Eastern Visayas which ranked third reported an average annual pay of PHP869,230 with a 95.1 percent increase from PHP445,417 in 2010. In real terms the average annual pay for Eastern Visayas increased from PHP358,629 in 2010 to PHP650,135.
Value of output posts 4.8 percent decrease
Total value of output generated by establishments with TE of 20 and over amounting to PHP710.9 billion decreased by 4.8 percent compared with PHP746.6 billion produced in 2010.
By industry, electric power generation, transmission and distribution produced PHP701.0 billion or 98.6 percent of the total value of output. This industry showed a decline of 5.0 percent in value of output from PHP737.8 billion in 2010. On the other hand, steam, air conditioning supply and production of ice accounted for a mere 1.4 percent ( PHP9.9 billion) for the sector.
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 2012.
Among regions, CALABARZON accounted for the biggest output value amounting to PHP205.7 billion, comprising 28.9 percent of the total value of output. This was followed closely by NCR with an output value of PHP161.5 billion (22.7%). Central Luzon came in third with total output value of PHP86.1 billion (12.1%).
Total expense amounts to PHP623.8 billion
Total expense in 2012, including compensation, incurred in business operation amounted to PHP623.8 billion.
By industry, electric power generation, transmission and distribution incurred PHP614.3 billion or 98.5 percent while steam, air conditioning supply and production of ice spent only PHP9.6 billion or 1.5 percent of the total expense.
CALABARZON spent the highest among the regions at PHP182.2 billion (29.2%). This was followed by NCR spending PHP153.1 billion (24.5%). Central Luzon placed third with PHP71.3 billion (11.4%).
Income per expense ratio stands at 1.21
Income per total expense ratio for establishments with TE of 20 and over in 2012 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 recorded an income per expense ratio of 1.22, whereas electric power generation, transmission and distribution stood at 1.21 income per peso expense.
Among regions, establishments in Cordillera Administrative Region (CAR) registered the highest return at 1.73 income per peso expense. Ilocos Region followed next with 1.51 and Eastern Visayas with 1.42 income per peso expense.
Value added decreases by 37.9 percent
In 2012, value added generated by establishments with TE of 20 and over was estimated at PHP195.7 billion, decreasing by 37.9 percent from PHP314.9 billion produced in 2010.
Electric power generation, transmission and distribution accounted for a value added amounting to PHP189.9 billion or 97.0 percent of the total in 2012 and attributing to a reduction of 38.8 percent from the PHP310.3 billion recorded in 2010. The remaining 3.0 percent (PHP5.8 billion) of the total was produced by steam, air conditioning supply and production of ice and showing an increase of 25.4 percent from PHP4.7 billion in 2010.
By region, CALABARZON produced the biggest share with PHP51.5 billion or 26.3 percent of the total value added, followed by Central Luzon with PHP25.5 billion (13.0%) and NCR with PHP 22.1 billion (11.3%).
Labor productivity is PHP4.1 million per worker
Labor productivity, defined as value added per worker, was estimated at PHP4.1 million per worker, lower by 37.7 percent compared to PHP6.6 million recorded in 2010.
By industry group, labor productivity of steam, air conditioning supply and production of ice establishments was higher than electric power generation, transmission and distribution establishments, generating estimated values of PHP4.6 million and PHP4.1 million per workers, respectively.
Figure 6 shows the labor productivity for electricity, gas, steam and air conditioning supply establishments with TE of 20 and over by industry group in 2012.
Among regions, CALABARZON was the most productive generating PHP9.4 million per worker. This was followed by Eastern Visayas with PHP5.4 million per worker and Central Luzon with PHP4.9 million per worker.
Gross addition to tangible fixed assets reaches PHP13.4 billion
Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, rose by 40.4 percent to PHP13.4 billion in 2012 from PHP9.5 billion in 2010.
Electric power generation, transmission and distribution with PHP11.1 billion, accounted for more than half (83.0%) of the total gross addition to tangible fixed assets. On the other hand steam, air conditioning supply and production of ice acquired only PHP2.3 billion or 17.0 percent of the total.
Total subsidies received amounts to PHP5.2 billion
Total subsidies provided by the government to support the business operation of electricity, gas, steam and air conditioning supply establishments with TE of 20 and over amounted to PHP5.2 billion indicating an increase of 211.9 percent from the PHP1.7 billion subsidies received in 2010.
All the subsidies received by the sector went to the electric power generation, transmission and distribution industry.
Total assets is PHP1.2 trillion
Total assets of electricity, gas, steam and air conditioning supply establishments with TE of 20 and over was valued at PHP1.2 trillion in 2012.
Electric power generation, transmission and distribution accounted for 96.4 percent (PHP1.1 trillion) of the total assets. Steam, air conditioning supply and production of ice had only PHP42.7 billion (3.6 %).
At the regional level, CALABARZON recorded the highest total assets worth PHP338.6 billion (28.6%), followed by NCR with PHP155.0 billion (13.1%) and Central Luzon with PHP113.4 billion (9.6%).
This special release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for the Electricity, Gas, Steam and Air Conditioning Supply Sector for establishments with total employment of 20 and over.
The 2012 CPBI is a forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now the Philippine Statistics Authority (PSA). Data collected from the census provide information on the levels, structure, performance, and trends of economic activities of the country. It also serves as benchmark information in the measurement and comparison of national and regional economic growth.
The census was conducted nationwide in April 2013 with the year 2012 as the reference period of data, except for employment, which is as of November 15, 2012.
The income and expense account in the Financial Statement of establishment was adopted in the design of sectoral questionnaires to capture data for the 2012 CPBI. This allowed respondents of the census an ease in accomplishing the questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
- Commonwealth Act No. 591 (An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein)
- Presidential Decree No. 418 (Reconstituting the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office, under the administrative supervision of the National Economic Development Authority)
- Executive Order No. 121 (Reorganization Act of the Philippine Statistical System)
- Executive Order 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector)
- Executive Order 5 (Strengthening the National Statistics Office)
Scope and Coverage
The 2012 CPBI 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)
The census 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
The units of enumeration for the 2012 CPBI are the establishment and enterprise. However, this special release is confined to the results of electricity, gas, steam and air conditioning supply sector with establishment as the unit of enumeration.
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.
Establishments with TE of 20 and over 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 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
p = 1, 2,..., 17 regions (geographic domains)
xpj = value of the jth establishment with TE of 20 and over in an industry domain within each region
j = 1, 2, 3, …, mp establishments
mp = 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 for Electricity, Gas, Steam and Air Conditioning Supply Sector for establishments with TE of 20 and over was 89.1 percent (237 out of 266 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Reports of the remaining 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 2012, were not imputed.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definition 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, 2012.
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.
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 purchased power, transmission and distribution of electricity, 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 non-industrial services done for others (except rent income from land). Intermediate input is intermediate expenses plus 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 economic activity, industrial services done for others, 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.
Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishment.