MightyRiverPower (MRP) shares dropped below $2 for the first time since listing at $2.50 in May.

MRP hit $1.99 in early trading on the NZX, while instalment receipts for Meridian Energy dropped to 93.5 cents, compared with their listing price of $1.

This change came in as Finance Minister Bill English outlined reasons for cutting the Government's expected proceeds from its asset sales programme. The sag in the government-controlled power companies' share prices carry on as English shaves estimates of total proceeds from asset sales from a mid-point of $6.1 billion to $4.8 billion.

English told Parliament's finance and expenditure select committee the reason for the reduced forecast was owing to the removal of Solid Energy from the programme and other developments in the sector, as well as the experience from the partial floats of Meridian Energy and MRP, and the placement of shares in Air New Zealand, which raised $3.9 billion.

He mentioned that Solid Energy had been valued in excess of $3 billion and had been seen as a "potentially significant" part of the programme.

Right away following English, Gabs Makhlouf , the Treasury Secretary in a hearing told the committee it was clear in hindsight that the Solid Energy board and management have taken riskier decisions than they possibly should have.