China's top economic planner is proposing graduated tariffs on residential electricity use as part of the nation's efforts to save energy, the National Development and Reform Commission said Saturday on its website.

"A graduated mechanism will improve China's power tariff structure and spur energy conservation," the economic planning body said.

According to the new plan, the graduated structure will penalize higher household electricity use, while keeping electricity bills basically stable for low power consumers.

Residential power prices would remain the same or be increased by 0.01 yuan ($0.0015) per kilowatt hour (kwh) if consumption does not top 140 kwh per month, the statement said. Residential electricity use is measured in kwh by metering devices located in the home.

While households which consume no more than 270 kwh of electricity each month would pay 0.05 yuan ($0.0075) per kwh for additional power use beyond 140 kwh per month.

For residential consumption of more than 270 kwh per month, rates would be charged at a price of at least 0.2 yuan ($0.003) per kwh higher than the current uniform price, the economic planning body said. They will seek public opinions on the rate proposal through October 21. According to the China law, public hearings must be held before electricity prices are adjusted.

Starting from 2004, east China's Zhejiang, Fujian and Southwest China's Sichuan provinces enacted new electricity reforms on trial bases and power consumption in the three provinces dropped.

China has been preparing to take on electricity reform since earlier this year as decades of government subsidies make the country's power cheap, which has in turn led to energy being wasted.

"For my family, the new electricity pricing will cost me an extra 30 yuan ($4.46) per month," said a man from Fuzhou, Fujian Province surnamed Xie.

"That's not a large amount, but it will raise my awareness about saving electricity."

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