ANDY Burnham is said to be weighing up plans to cut energy bills in a boost for millions of households.
It is understood that allies of the prime minister hopeful are drawing up a package of measures to guarantee every household a cheaper rate for a set amount of gas and electricity, according to The Telegraph.
The model is already used in countries including India and Japan.
It is hoped that the plans would save middle-income households around £225 a year by making sure everyone has access to enough cheap energy to cover their essential needs.
The plans are in the early stages and it is not yet clear how the policy would be funded.
But think tank the Joseph Rowntree Foundation, which has put forward the proposals, suggests tax raids on entrepreneurs and landlords.
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Mr Burnham will have an uphill battle to win round voters to the policy after energy secretary Ed Miliband all but abandoned his promise to shave £300 a year off energy bills.
Instead, he has encouraged households to opt for green technology in a bid to slash their bills.
But as The Sun exclusively revealed this week, installing a heat pump could actually cost households £95 more a year, according to a Labour report.
In his bid to become the next prime minister Mr Burnham has emphasised his commitment to cutting the cost of living.
Earlier this month he said: “Britain is paying too much for the basics.
“People are paying too much, but businesses are also paying too much, and that is certainly true of energy.”
It is said that former energy minister Miatta Fahnbulleh is helping Mr Burnham to flesh out the plans and is in favour of the think tank’s proposals.
The Affordable Energy Guarantee would give every household a discounted unit rate on a core amount of energy, which is equivalent to half of typical domestic consumption.
Energy use above this would be charged at the market rate.
As a result, households in the lowest third of incomes would save an average of £196 a year.
Meanwhile, single parents in the lowest third of incomes would save £247 on average.
A couple with children in the lowest third of incomes would save £253 a year.
The policy would acknowledge that some households need more energy than others and families with children would get additional increments for each child.
Meanwhile, households that receive means-tested or disability benefits would get the discounted rate on all their energy use.
Tilly Cook, Joseph Rowntree Foundation senior policy adviser, said: “Energy is an essential service.
“The government should redesign our current dysfunctional system to provide a basic portion of cheaper energy to all households.
“This would allow everyone to afford their bills and protect us from shocks like the US-Israel war on Iran.”
The news comes as industry regulator Ofgem has examined similar proposals to reduce standing charges on energy bills.
Standing charges are a daily charge you pay every day of the year, irrespective of whether you use any gas or electricity.
Two major energy suppliers have launched low standing charge deals for a limited number of customers.
EDF launched its low standing charge tariff this week as part of a trial.
The firm said it is targeted at lower-energy users – where standing charges make up a larger proportion of the user’s bill.
Eligible customers who take part in the trial will receive a £6.25 monthly discount per fuel on their standing charges. There are no exit fees.
Meanwhile, E.ON Next has launched a 12-month trial of a new lower standing charge tariff, Next Lower Daily Fixed.
To be eligible for the trial, existing E.ON Next customers must pay by direct debit and meet a minimum annual consumption threshold of at least 700kWh of electricity and 2,900kWh of gas.
Meanwhile, Mr Burnham is also considering plans to remove green levies from household energy bills and move the policy costs into general taxation in a bid to ease the cost of living.
