where the money will go Ergon has been locked into contracts with state-owned electricity generators ahead of potential assett sales. Photo: Glenn Hunt Almost 82 per cent of next year's 22.6 per cent increase in the average Queensland residential power bill will go towards paying for the generation of power, getting it to your home, reading your meter and sending you bills, according to the Queensland Competition Authority. The carbon tax makes up 3.3 per cent of the rise. In quick terms, the carbon tax is $9 of the $268 yearly increase to the average residential power bill, or $107 of the complete $1451 average annual power bill. A breakdown of the new charges. Photo: Natalie Bochenski Small businesses, meanwhile, face a 17.4 per cent increase. General Manager of Brisbane's Exchange Hotel, Steve Lee, said the hotel would try to absorb the electricity price rises. "I think most businesses, especially hospitality, try to absorb as much as they can," he said. A typical residential breakdown. "It's a catch-22 - if you keep raising your prices, you put yourself out of the market," he said. But then again you've still got to make your margins like every business does, you still have targets you've got to reach. The Queensland Competition Authority released a breakdown of its 2013-14 residential power price rise on Thursday. Of the $268 annual increase, $127 - or 47.38 per cent - is linked to the maintenance of the network's poles and wires. Another 23 per cent, or $60 of the increase, will cover the cost of reading and assessing homes' electricity usage then sending out bills. A further 11.9 per cent, $32 of the increase, comes from the generation of the power. These three elements together make up 81.66 per cent of the increase. The carbon tax's 3.3 per cent contribution makes up adds $9 of the rise. Two federal government green schemes - the Renewable Energy Target scheme and the Green Energy Commodities scheme - add between $6 and $7 to the increase. That is equivalent to 2.61 per cent of the rise. When it comes to the complete bill - not just the $268 average residential increase - but the complete average power bill paid by a family of four in 2013-14 (between $1451 a year and the $2005), the carbon tax will make up about 7.4 per cent, or about $107. The 150,000 Queensland small businesses on a tariff 20 scheme face a 17.4 per cent increase, QCA chairman Malcolm Roberts said. This will raise their bill by $281 - up from $1615 a year to $1896 a year - on the flat rate. "As you can see network costs are one of the largest cost drivers, the solar bonus is very significant and wholesale energy costs are also forecast to rise in 2013-14," he said. Mr Lee said the increase was a double-edged sword for businesses, such as his Exchange Hotel. People at home who are spending more on electricity at home have even less to spend out, so it's a roll-on affect. It really affects that culture," he said. The QCA also plans to phase out nine less widely-used business tariffs over the next seven years. Three of the tariffs only have 170 customers and 38,000 customers overall.