China will implement a three-tier pricing system for household electricity consumers from July 1, the National Development and Reform Commission said on its website on June 14.

The three-tier progressive pricing system will replace the current "one price fits all" scheme. Under the new system the more electricity a family uses the higher bills it will have to pay.

Under the plan, electricity prices for first-tier users - which represent about 80 percent of households - are likely to remain the same.

However, second-tier users will pay an additional 0.05 yuan per kilowatt hour, while third-tier users will pay an extra 0.3 yuan per kilowatt hour.