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AAP
AAP
Eleanor Wilson and Lucinda Garbutt-Young

Power provider defends costings after smelter's bailout

A Rio Tinto-run smelter had been at loggerheads with state-owned Hydro Tasmania over an energy deal. (Ethan James/AAP PHOTOS)

An electricity provider has defended staying firm on its costings for a major smelter deal, despite government intervention being needed to keep it open and retain hundreds of jobs.

Tasmania's Bell Bay Aluminium smelter, one of the largest in the country, was given a lifeline on Thursday through a $200 million joint support package from the state and federal governments.

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