BOLTON'S small and medium-sized enterprises are massively underestimating the cost of time and energy wasted in their business.

National research by energy company Powergen shows the cost of wasted time is more than 2.5 times higher than bosses estimate.

The survey also reveals that, while most businesses believe they are not wasting energy, many are failing to take the simplest of steps that could reduce their energy bills.

Bosses surveyed said that they felt that nearly nine per cent of staff time -- amounting to one month per person a year -- was wasted by factors beyond their control.

Top time wasters were having to wade through junk emails, being kept on hold on the phone, covering for sick or absent staff, battling red tape and being stuck in traffic.

Bosses estimate that, on average, each employee has 40.3 minutes of his or her time wasted every day.

That equates to 161.25 working hours a year, at a cost of £7,442 a year per business, but when asked how much they thought this was costing them, bosses said just £2,800.

SMEs are also underestimating the amount of energy being wasted in their business.

The majority (93 per cent) said their energy efficiency was fair or better. Yet more than half (54 per cent) admitted to never having taken steps to improve energy efficiency.

Furthermore, 37 per cent said they left lights on in empty rooms, 28 per cent left heating on and 26 per cent left PCs, mobile phone chargers and other equipment switched on or on standby overnight.

Powergen says that SMEs could cut up to 20 per cent off their energy bill by taking simple energy steps.

Neil Gould, Powergen's SME manager, said: "Most of the time SMEs can't control the things which waste their staff's time, but they can do something about cutting the electricity and gas they waste.

"No-one expects every SME to have an energy expert on board, but there's plenty of free advice available, such as from Powergen's own energy efficiency advice centre."