TENANTS could save money on gas and electricity bills under a bulk buying deal struck by their council landlord.

Town hall bosses say residents will save at least £10 a year, while the council itself will receive money to invest in energy efficiency.

Housing officers across Greater Manchester have formed an energy marketing alliance to work with Manweb ScottishPower. This allows Bury to tap into power supplies at competitive prices.

Councillor Kevin Scarlett, housing chairman, said the deal would initially be offered to new tenants when they move in. Existing tenants will have the chance to switch over later, but only if they wish. "Tenants will know they have selected a supplier that has already been thoroughly assessed on price and quality of service for the supply of electricity and gas and that this will be maintained on a competitive basis throughout the period of the contract," he said.

"We estimate that fuel supply savings of at least £10.50 a year will be passed back to the customer. Also, it will reduce any confusion for tenants which is often caused by canvassers from other prospective fuel suppliers."

Manweb ScottishPower will pay the council an agreed sum for every property that signs up. This will be invested in energy efficiency schemes which bosses say will ultimately benefit tenants.

Councillor John Smith, housing spokesman, said that the deal would allow the alliance to persuade Manweb ScottishPower to take greater social and ecological responsibility.

It would set up a freephone Benefits Helpline to give advice on all social security benefits, energy efficiency and help with fuel bills.

"We believe that we have put together a great deal here, not just for our tenants and ourselves, but also the environment generally," he said. "I am sure that this will be well received."