SMALL and medium sized enterprises (SMEs) in the North-East are losing about £50m a year as a result of inefficient energy management, according to British Gas

The figures, released as part of an initiative to encourage energy efficiency among SMEs, reveal that individual companies are losing thousands of pounds a year by failing to employ basic, low cost energy efficiency measures.

The news follows the introduction of a Government tax on business energy use - the Climate Change Levy (CCL).

The CCL, which will be paid via energy bills, was introduced on April 1 following the Kyoto Protocol and is designed to help the UK meet its target for reducing greenhouse gas emissions.

"SMEs will bear the brunt of the CCL unless they become more energy efficient," warned British Gas' business marketing manager, Adam Taylor.

A Government-funded energy efficiency programme estimates that the average SME can save up to 20 per cent off its energy bills by introducing low-cost techniques.

Companies can find out more about energy efficiency measures or the impact of the CCL at www.gas.co.uk/business