New Delhi: After the increase in electricity tariff in Delhi, the Center has decided to increase the electricity prices in other states too. It has given ultimatum to those states which due to political reasons have been avoiding increase in power tariffs.

According to sources, now the states like Tamil Nadu, Karnataka, Maharashtra, Punjab, Jharkhand, along with others are likely to increase power prices by December 2011. 

The Central government has clearly stated that if these states refuse to increase electricity tariffs, they would be deprived of extra funds provided to them for the development of power sector in the next financial year.

The Union Power Ministry has expressed happiness with the average hike of 21 percent in electricity rates in the national capital. 

Looking at the rise in the power production prices, the government has categorically stated that it is necessary to increase the Electricity tariff in others states too.

It may be noted that there are a few states which have not increased electricity prices over the past five years causing a whopping loss of Rs 70,000 crore in the financial year 2009-10. This has worried Prime Minister Manmohan Singh and Union Power Minister Sushil Kumar Shinde who have already expressed concern in this regard.

The latest figures show a 10 percent difference in cost of power generation and the rate of electricity charges in Haryana, whereas in Madhya Pradesh the difference is of 17 percent, in UP- 29 percent, Rajasthan-37 percent, Karnataka-22 percent and 40 percent in Tamil Nadu.

This clearly expresses that UP needs a tariff increase of 29 percent and Haryana needs to raise it to 10 percent.

Meanwhile, the Shunglu Committee report is awaited to discuss the financial conditions of the Electricity Board in different states. The report is expected next month, following which the states may decide to increase the rates of power tariff.