The Government is moving to cap the number of houses that businesses can fit out under the new state-funded home heating and insulation scheme, reports Anne Gibson of the New Zealand Herald.

The new limits being imposed by the Energy Efficiency and Conservation Authority ("EECA") limit have reportedly outraged at least one business, which employed more staff to cope with the work.

A spokeswoman for EECA is reported to have said this week that the Government's energy campaign was being fine tuned, and companies were being offered new deals. Contracts with a group of selected approved providers - the only ones consumers are allowed to use to get the state subsidy - were being renegotiated.

Interim contracts were signed in July but, from October 1, new contracts will be in force. Some had already been finalised but she could not say how many houses firms were limited to.

The scheme sees about $1,000 of an average $3,000 insulation or heating bill paid by the Government.

While a limit has been placed on the number of houses businesses can fit out, the number of approved providers EECA is negotiating contracts with has risen from 58 to 60.

Richard Watson of Premier Insultation is reported to have said that his business could do 500 a month but had been limited to just 1,000 houses over nine months. The numbers had been provided to Premier verbally but not yet in a contract, he said.

* A list of approved providers is at www.energywise.govt.nz.