The Electricity Authority is under fire from Labour’s economic development spokesman David Cunliffe for taking electricity companies’ profits into account when deciding how competitive the sector has become.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall will lead the process, to be held next month, which will canvas legislative changes the government considered necessary for the float of Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy.

Tower has emerged as a potential investor in the government's proposed partial sale of state assets.

Melbourne-based investment bankers to advise government on selldown.

The government has confirmed it is looking at allowing partial privatisation of the country's large government-owned energy firms.