POWER bills are set to soar again for many households and businesses as a result of new tariff hikes and the carbon tax.

A day after the State Government announced a three-man razor gang to review Ergon, Energex and Powerlink, Energy Minister Mark McArdle admitted electricity costs would rise by an average of 11 per cent.

For households with off-peak tariffs for things like electric hot water, air conditioning or pool filters, the rise would amount to an increase of about $69 a year, while small businesses could expect to pay $112 more on average.

"The determination does not cover tariff 11. That tariff is being frozen by the Government for 2013," Mr McArdle said.

Queensland Competition Authority chairman Brian Parmenter said the typical residential household in southeast Queensland used tariff 11, as well as 31 or 33.

He said it was difficult to say what increase each household would face because of the complexity of the determination.

"This determination takes us from a set of prices that were never really cost reflective, to a set of cost reflective tariffs," Mr Parmenter said.

"Essentially that means consumers will pay for the cost of supplying electricity to them, which could mean more hefty rises for those outside of the southeast."

He said the QCA's previous estimate for the carbon tax of $192 a year per household, would be affected by the determination and the freeze on tariff 11.

Mr McArdle said it was clear the carbon tax would account for most of the increase.

"The Queensland Government cannot stop the carbon tax but from July 1, household electricity bills will show how the Federal Government's carbon tax impacts on the prices of the three main residential tariffs," Mr McArdle said.

"Giving householders this information will make the cost of carbon transparent on electricity bills."

Mr McArdle also indicated the future of electricity distributors Ergon and Energex as separate entities could be limited, with government analysis finding much duplication.

"We're very concerned about the capital spend and the amount of high-level and middle level employment," he said.

"There are two boards, two CEOs, two CIOs, two management structures. There is really scope there to scale back these entities."

An independent review panel appointed by the government to find cost savings in power generation and delivery in Queensland will report back in January.

Originally published as Power bills to surge, says Minister