An online service claiming to offer cheaper heating oil to Irish businesses and consumers has been introduced.

The online oil company, www.cheaperheatingoil.ie, will operate like a virtual energy co-operative, using the Internet to provide businesses and consumers with cheaper heating oil, as well as future price insurance to transacting customers, according to its chief executive, Mr Conor Toolan.

"By grouping customers together, we effectively become a large distributor or virtual customer," he said. "We can get a discount off the standard price, which we will pass on to the customer and keep a percentage ourselves. "Our aim is to give Irish consumers easy access to cheaper heating oil. In addition, we plan to provide businesses with the means to manage their energy costs as they would with foreign exchange and interest rates."

The service would allow businesses to budget their oil bills, said Mr Toolan.

"Big companies like Aer Lingus hedge out their energy risk, but smaller companies don't. But we can do that by grouping them together," he added .

Cheaperheatingoil.ie, which employs five people, said its target was 60,000 registered customers and up to 20,000 on-line transactors between now and the end of the season.

Chairman Mr John Carr declined to state the investment in the company or the identities of the investors behind the venture.

The Republic's top manufacturing companies could save more than £40 million in energy costs through better monitoring and targeting, a conference in Limerick was told yesterday.

Mr Brian Sheridan of the Irish Energy Centre said improved work practices, better training, and plant adjustment would lead to an improvement of product quality and yield as well as reduced maintenance and deferred or reduced capital expenditure.