State power firm PT PLN says the new installation fees in Greater Jakarta are optional, only for new customers wishing to secure immediate electricity connection, amid the company's shortage of investment capital.

PLN president director Fahmi Mochtar said Tuesday the new fees were effective mid-May and not actually an obligation.

"With the limited capital for expanding transmission, PLN can only serve a limited number of new customers. As a solution, we offer new customers an option to pay actual full costs for the installation for quick connection," he said.

"We will keep serving customers who wish not to pay that full cost, but they will be included in our waiting lists until the capital for transmission expansion is available."

Fahmi added PLN needed between Rp 3.2 trillion and Rp 3.7 trillion of capital expenditure for transmission expansion each year.

"But the available fund is currently less than Rp 1 trillion," he said.

PLN is the sole electricity distributor in the country. It sells electricity at prices that have been capped by the government. The installation fees are also regulated.

But as of May 15, PLN Disjaya, the branch of PLN responsible for the supply of power to Greater Jakarta, published new fees for the installation of new electricity connections.

Under the new mechanism, customers are responsible for the entire required costs for the transmission of power from PLN's closest transmission tower to their house. This has led to customers paying more than the installation fee.

PLN Disjaya general manager Purnomo Willy said the increases varied depending on location and material price.

He added installation fees for a capacity of 450 VA (volt-amps) had increased from Rp 150,000 to between Rp 550,000 and Rp 600,000.

Installation fees for a capacity of 900 VA has risen from Rp 270,000 to about Rp 700,000, while the installation fees for a capacity of 1,300 VA has increased from Rp 400,000 to Rp 900,000. Willy said 2,000 customers had been served under this new mechanism.

The government, however, has expressed strong objection to the new fees.

"Every year, the government allocates trillions in subsidies for the people through PLN," said J. Purwono, the Energy and Mineral Resources Ministry's director for electricity and energy utilization.

"PLN should not be tricky by increasing its revenue from people without approval from the ministry."

The fee increase requires ministry approval, which it never got.

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