Contact's share price dropped this morning, partly in response to uncertainty over the future of the Tiwai Point aluminium smelter.

Prime Minister John Key says the government has "put its best foot forward" and will offer Rio Tinto no more than the short-term subsidy offered last week.

Rio Tinto is doubtless more than happy that the Government has stepped in to try to broker a deal over the electricity supply contract for the Tiwai Pt aluminium smelter.

The Tiwai Pt power price stoush will probably have a small negative effect on the price of Mighty River - but it's not a showstopper say sharemarket analysts.

The Government has opened discussions with Tiwai Point aluminium smelter's ultimate owners Rio Tinto in a bid to broker a deal after talks between the smelter and Meridian Energy reportedly broke down.

Tiwai Pt aluminium smelter's owners have contradicted a report from Meridian, saying they think a power deal can be agreed on.

The state-owned electricity generator and retailer yesterday reported an underlying net profit after tax of $88 million for the latest half-year after non-cash items

Meridian Energy says it's ready for partial privatisation and expects a significant uplift in operating earnings after transmission outages knocked its performance.

It is folly to press on with the partial privatisation of the state-owned power companies when the future of the Tiwai Pt aluminium smelter is unresolved, writes Brian Fallow.

Meridian Energy is considering the sale of its 50 per cent stake in the A$1 billion Macarthur wind farm in Australia.