Policy costs are effectively government taxes used to fund environmental and social schemes, such as subsidies for renewables.
These costs made up about 16% of an electricity bill and 6% of a gas bill last year, according to research by the charity Nesta.
The Climate Change Committee has long recommended removing policy costs from electricity bills to help people feel the benefits of net-zero transition.
The government’s climate adviser said the move would make switching to electric technologies, such as heat pumps, cheaper and encourage take-up.
One option – backed by Energy UK – is shifting policy costs from electricity bills to gas.
Energy UK analysis shows that over 15 years, households using an air source heat pump, which is an electrically powered system, could save up to £7,000, compared to those with gas boilers, if energy bills were fully rebalanced.
But such a move would result in an increase in bills for households that use gas for heating.
When asked if that was one option the government was considering, Miliband said: “I’m not going to get into any of the detail of this.
“All I am saying is I’ve always said I’m cautious about this issue because fairness is my watchword.
“So if we can do it in a way that’s fair, that’s obviously something we’re seriously looking at.
“But no decisions have been made on that. I’m not going to do it in a way that damages the finances of ordinary people.”
At the committee, Chris O’Shea, chief executive of Centrica, said this would be a subsidy from the poor to the rich.
