Tiwai stays open

The Herald reports:

lectricity company share prices rose on news that the Tiwai Point aluminium smelter will remain open and run at full capacity at least until the end of 2017, even though Meridian Energy remains the sole supplier after other power companies proved unwilling to make much more than token gestures to supply the smelter.

Meridian shares led the charge, rising 6.4 per cent to $2.395 on the NZX, with Contact Energy up 3 per cent to $5.10, Genesis Energy up 3.5 per cent at $1.77, MightyRiverPower up 3.3 per cent to $2.85 and Infratil-controlled TrustPower up 2.2 per cent to $8.

Meridian’s chief executive Mark Binns told BusinessDesk a new price for about 30 per cent of the aluminium smelter’s electricity is “a hell of a lot better than the old price” it was receiving under the contract renegotiated in 2013, although it remains below market rates.

Good to see a commercial deal done, without any subsidy or intervention by the Government.