Number of establishments grows by 14.7 percent
The final results of the 2012 Census of Philippine Business and Industry (CPBI) showed that there were a total of 265 establishments engaged in electricity, gas, steam and air conditioning supply. This number is higher by 14.7 percent from the 231 establishments recorded in 2010.
Electric power generation, transmission and distribution recorded 259 establishments or 97.7 percent of the total while the 6 remaining establishments or 2.3 percent of the total were engaged in steam, air conditioning supply and production of ice. No establishment was engaged in manufacturing of gas and distribution of gaseous fuel through mains. Figure 1 shows the distribution of all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2012.
The top three regions in terms of the number of establishments accounted for almost one-third (32.1%) of the total number of establishments, led by Central Luzon with 32 establishments or 12.1 percent of the total. This was followed by CALABARZON with 29 establishments (10.9%) and Central Visayas with 24 establishments (9.1%). On the other hand, National Capital Region (NCR) recorded the least count with only 5 establishments (1.9%). Figure 2 shows the regional distribution of all electricity, gas, steam and air conditioning supply establishments in 2012.
Total employment drops by 0.05 percent
In 2012, electricity, gas, steam and air conditioning supply sector employed a total of 47,973, representing a slight decline of 0.05 percent (25 workers) from the employment figure of 47,998 workers recorded in 2010.
At the industry level, electric power generation, transmission and distribution employed the bulk of workers with 46,707 or 97.4 of the total. The remaining 1,266 workers (2.6%) were employed by steam, air conditioning supply and production of ice. Figure 3 shows the distribution of employment for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2012.
By region, NCR employed the most number of workers with 6,539 or 13.6 percent of the total, despite recording the least number of establishments. CALABARZON with 5,514 workers (11.5%) ranked second. Completing the top three regions with the most number of workers was Central Luzon with 5,251 (10.9%).
The average number of workers per establishment for the sector was recorded at 181, posting a decrease of 13.0 percent from the average of 208 workers in 2010. Steam, air conditioning supply and production of ice had 211 workers per establishment while electric power generation, transmission and distribution registered 180 workers per establishment.
Average annual pay is PHP657,253
Total compensation paid in 2012 amounted to PHP31.5 billion, translating to an average annual compensation of PHP657,253 per employee. Compared to the average annual pay of PHP539,900 in 2010, average pay in 2012 is higher by 21.7 percent. In real terms, however, average pay per employee increased by only 12.8 percent.
Steam, air conditioning supply and production of ice paid an average annual compensation of PHP1,887,160 recording a 157.1 percent increase from the PHP734,001 in 2010. Electric power generation, transmission and distribution industry paid PHP623,917. Figure 4 compares the average annual compensation of employees for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2012 and 2010.
By region, employees in NCR received the highest average annual pay of PHP1,239,924, which was equivalent to PHP996,724 in real terms. This was followed by employees in CALABARZON receiving an average annual compensation of PHP1,013,388. In real terms this is equivalent to PHP780,730. Eastern Visayas which ranked third reported an average annual pay of PHP888,899 or PHP664,846 in real terms.
Value of output posts 2.1 percent decrease
Total value of output, generated by the sector amounting to PHP732.9 billion, dropped by 2.1 percent compared to PHP748.3 billion produced in 2010. This was attributed solely to the decrease (2.2%) in the value of output produced in 2012 by the electric power generation, transmission and distribution industry.
By industry, electric power generation, transmission and distribution produced PHP723.0 billion or 98.6 percent of the total value of output. 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 all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2012.
Among regions, CALABARZON accounted for the biggest output value amounting to PHP206.6 billion, comprising 28.2 percent of the total value of output. This was followed by NCR with an output value of PHP161.1 billion (22.0%). Central Luzon came in third with total output value of PHP90.9 billion (12.4%).
Total expense amounts to PHP631.6 billion
Total expense in 2012, including compensation, incurred in business operation amounted to PHP631.6 billion.
By industry, electric power generation, transmission and distribution incurred PHP622.1 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 PHP183.0 billion (29.0%) followed by NCR spending PHP152.9 billion (24.2%). Central Luzon placed third with PHP72.7 billion (11.5%).
Income per expense ratio stands at 1.23
Income per expense ratio in 2012 was recorded at 1.23, indicating that for every peso spent PHP1.23 was realized in terms of income.
Electric power generation, transmission and distribution recorded an income per expense ratio of 1.23 while steam, air conditioning supply and production of ice stood at 1.22 income per peso expense.
Among regions, establishments in Cagayan Valley registered the highest return at 2.15 income per peso expense followed by Cordillera Administrative Region with 1.74 income per peso expense. Ilocos Region came next with 1.51 income per peso expense.
Value added down by 32.4 percent
In 2012, value added generated by the sector was estimated at PHP213.5 billion decreasing by 32.4 percent from PHP315.8 billion produced in 2010.
Electric power generation, transmission and distribution accounted for a value added amounting to PHP207.7 billion or 97.3 percent of the total. Value added for this industry recorded a decline of 33.2% from PHP 311.1 billion produced in 2010 attributing to an overall drop for the indicator in 2012. The remaining 2.7 percent (PHP5.8 billion) of the total was produced by steam, air conditioning supply and production of ice.
By region, CALABARZON produced the biggest share with PHP51.6 billion or 24.2 percent of the total value added, followed by Central Luzon with PHP30.1 billion (14.1%) and NCR with PHP21.8 billion (10.2%).
Labor productivity is PHP4.5 million per worker
Labor productivity, defined as value added per worker, was estimated at PHP4.5 million per worker, lower by 32.3 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 PHP4.6 million and PHP4.4 million per worker, respectively.
Figure 6 shows the labor productivity for all electricity, gas, steam and air conditioning supply establishments by industry sub-class in 2012.
By region, workers in CALABARZON were the most productive recording a ratio of PHP9.4 million. This was followed by workers in Cagayan Valley and Central Luzon with respective productivity of PHP8.4 million and PHP5.7 million per worker.
Gross addition to tangible fixed assets reaches PHP13.8 billion
Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, rose by 43.7 percent to PHP13.8 billion in 2012 from PHP9.6 billion in 2010.
Electric power generation, transmission and distribution with PHP11.5 billion, accounted for 83.6 percent 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 16.4 percent of the total.
Total subsidies received amounts to PHP5.3 billion
Total subsidies provided by the government to support the business operation of electricity, gas, steam and air conditioning supply establishments amounted to PHP5.3 billion, an increase of 204.3 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.
This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for the Electricity, Gas, Steam and Air Conditioning Supply Sector.
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 by the establishment treated on a consumed basis.
Data are presented at the national, regional and industry group or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) for the sector.
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:
- All establishments with total employment (TE) of 10 and over
- All establishments with TE less than 10, except those with legal organization classified as single proprietorship and economic organization classified as single establishments.
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.
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 estimate of the total of a characteristic 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
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 was 89.4 percent. These included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or transferred, out of scope, refusals, duplicates, and referrals.
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, out of scope and out of business in 2012 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, 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.