SM assures mall goers of blackout-free summer

MANILA, Philippines - No power in summer? No problem for SM shoppers.

SM Prime Holdings Inc., the integrated property firm of the family of retail tycoon Henry Sy, has assured its millions of customers that its empire of malls, especially in Luzon, will have sufficient power by summer of 2015 despite a looming energy shortage.

Teresita Sy-Coson, vice-chairperson of holding firm SM Investments Corp., said on the sidelines of the ASEAN Business Advisory Council press conference yesterday that all SM malls will be running on normal operations even if the foreseen power shortfall by summer next year happens.

“We always have gensets (generator sets) in our malls so it is really part of the plan. We are prepared with the generators so we are fully prepared for those contingency,” Sy-Coson said.

The SM group operates 46 malls across the country, most of which are located in Luzon— the region expected to be hit with rotating blackouts by summer next year due to insufficient power supply.

These malls, which serve as leisure and shopping destination for many, include SM Mall of Asia in Pasay City, SM Megamall in Ortigas, and SM North EDSA, among others.

These shopping centers also provide customers with groceries, fresh meat and vegetables through Savemore.

The Department of Energy maintained yesterday its earlier forecast of a power shortage in Luzon by summer next year. It said the impending energy shortage can only be resolved by invoking Sec. 71 of the Electric Power Industry Reform Act of 2001 (EPIRA), which would give the President emergency powers to resolve the power crisis.

As of the first half of the year, SM Prime’s consolidated net income jumped 11.7 percent to P9.8 billion from P8.8 billion a year earlier while consolidated revenues grew 7.2 percent to P33.4 billion from P31.2 billion.

Rental revenues, which accounted for 53 percent of SM Prime’s consolidated revenues, climbed 12.5 percent to P17.7 billion due to new malls that opened in 2013 and 2014, as well as the shopping spaces added in existing malls like SM Megamall.