Cyprus government gives green light to price cap for bottled water
Cyprus government gives green light to price cap for bottled water
MEPs will approve a bill to set a price cap on bottled water to protect consumers from exploitation.
During the recent round of discussions on the issue in the House Commerce Committee on Tuesday, Trade Minister George Papanastasiou reiterated that the cap would only apply to specific locations and not across the board, in order to avoid market interference.
Supermarkets and kiosks are exempt from the regulation, he told MPs.
Instead, the price cap on bottled water will apply in places such as airports, stadiums, cinemas, beach cafes and theme parks.
The aim is to ensure that for important goods such as water, “consumers are protected in areas where there is no competition.”
“The price of the item should first and foremost be logical for the consumer and also for the retailer.”
On Thursday, February 6, 2025, the House of Representatives passed a bill giving the Secretary of Commerce the authority to set a price cap for bottled water at certain points of sale by decree.
The government's draft was adopted with 21 votes in favor and four against, with 13 MPs abstaining.
The Minister of Commerce now has the power to set, by regulation, the maximum retail price for water for companies “at certain points of sale where, objectively, sufficient competition cannot exist”.
These include points of sale in airports, ports, sports facilities, beaches, archaeological sites, museums, healthcare facilities, theaters, cinemas, amusement parks and zoos.
It does not apply to canteens, bars, cafés, restaurants, supermarkets, kiosks and vending machines.
The following retail products are affected by the price cap: 500 ml and 750 ml water bottles and drinking water sold in 500 ml and 750 ml glasses.
The price cap only applies when the products are sold to “standing customers” – that is, customers who are not sitting at a table and being served.
The stated purpose of the law is to prevent price gouging by requiring retailers to make a so-called “reasonable profit” on these products.
In the event of violations, prison sentences and fines are also provided for. The court can impose a prison sentence of up to two years or a fine of up to 15,000 euros.
During the debate on the bill in committee, some MPs complained about government interference in the free market.
Source: CyprusMail.com
During the recent round of discussions on the issue in the House Commerce Committee on Tuesday, Trade Minister George Papanastasiou reiterated that the cap would only apply to specific locations and not across the board, in order to avoid market interference.
Supermarkets and kiosks are exempt from the regulation, he told MPs.
Instead, the price cap on bottled water will apply in places such as airports, stadiums, cinemas, beach cafes and theme parks.
The aim is to ensure that for important goods such as water, “consumers are protected in areas where there is no competition.”
“The price of the item should first and foremost be logical for the consumer and also for the retailer.”
On Thursday, February 6, 2025, the House of Representatives passed a bill giving the Secretary of Commerce the authority to set a price cap for bottled water at certain points of sale by decree.
The government's draft was adopted with 21 votes in favor and four against, with 13 MPs abstaining.
The Minister of Commerce now has the power to set, by regulation, the maximum retail price for water for companies “at certain points of sale where, objectively, sufficient competition cannot exist”.
These include points of sale in airports, ports, sports facilities, beaches, archaeological sites, museums, healthcare facilities, theaters, cinemas, amusement parks and zoos.
It does not apply to canteens, bars, cafés, restaurants, supermarkets, kiosks and vending machines.
The following retail products are affected by the price cap: 500 ml and 750 ml water bottles and drinking water sold in 500 ml and 750 ml glasses.
The price cap only applies when the products are sold to “standing customers” – that is, customers who are not sitting at a table and being served.
The stated purpose of the law is to prevent price gouging by requiring retailers to make a so-called “reasonable profit” on these products.
In the event of violations, prison sentences and fines are also provided for. The court can impose a prison sentence of up to two years or a fine of up to 15,000 euros.
During the debate on the bill in committee, some MPs complained about government interference in the free market.
Source: CyprusMail.com
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