the tariff rates of the stateowned electric company stelco are set at rf usd per kwh for kwh per month for the lowest rate and peak at rf usd per kwh if the monthly consumption exceeds kwh stelco the reform set specific and increasing prices per each block quantity of consumed electricity per household and meter under this new system tier one keeps the old quota price applicable to per cent of households tier two electricity prices are slightly higher and charged for kwhs exceeding the amount of basic use which is differentiated across regions and tier three sets a much higher tariff for the amount of electricity referred to as luxury use zhang the new pricing system was implemented in response to growing energy security and environmental concerns to improve efficiency and lower pollution while maintaining affordable consumer prices