The Queensland Competition Authority (QCA) has announced an increase of at least $260 in the annual electricity bill of average Queensland households beginning July 1.

This 22.6 percent hike, which is higher than earlier estimations, is just one of several price increases announced by the agency on Friday.

"It's a very significant rise," QCA chairman Malcolm Roberts told the media. "We do appreciate it's going to strain many family budgets."

The increase will see an average household electricity bill shoot up from $1,184 to $1,451.

"It'll also have an impact on businesses," Roberts added.

An expected 17.4 percent rise in power bills will hit small enterprises, while big businesses should brace for at least a 13 percent increase.

According to Roberts, the increase is mainly attributed to the rise in distribution costs, which includes the maintenance of poles and wires.

Aside from that, rates are heavily burdened by the current subsidies on solar power, as well as the impact of past network costs increases (2012-2013) which had to be deferred due to tariff freeze.

"The network costs make up almost half of the bill and they have increased substantially," he said.

Consumers cannot also expect an electricity rebate as the state government had already announced that it will not be introducing such scheme in Tuesday's budget.

Meanwhile, a joint statement released by Treasurer Tim Nicholls and Energy Minister Mark McArdle had blamed the increase partly due to the carbon tax and solar subsidies, which consumers have to absorb as pass-through charges.

Mr McArdle claimed that Queensland households are bound to cut down at least 15 percent of their power bills if these add on charges such carbon tax is removed by the government.

Shadow treasurer Curtis Pitt, on the other hand, had put the blame on Premier Campbell Newman for allegedly not fulfilling his commitment of lowering electricity costs once he's elected.

"Campbell Newman and the LNP promised they could control the cost of living and they said they would be able to control electricity pricing," he told the media.

"Not only haven't they done that, they've also walked away from their loose commitments they made in February to try and stem what we would have thought was a 21.4 per cent rise."