Filenews 19 June 2024 - by Eleftheria Paizanou
The affected business operators are not even discussing imposing a cap on the selling price of bottled water at some points of sale.
They conveyed their disagreement to yesterday's session of the parliamentary Trade Committee, which began discussing a relevant government bill.
Specifically, the bill proposes to set maximum selling prices for bottled water in packages of 500 ml and 750 ml, as well as for drinking water sold in a glass. The measure will apply to specific points of sale, such as airports, ports, sports venues (stadiums etc), closed beaches (remote), theatres, cinemas, archaeological sites and museums.
Those affected argue that the government measure is a setback and a blow to competition. At the same time, they claim that the cap will have the opposite effect. A sticking point is the setting of a ceiling on the selling prices of water at Larnaka and Pafos airports.
Voices for unfair competition
A spokesman for the Association of Consumer Suppliers expressed his reservations, stressing that the bill is unfair and will create unfair competition between local and imported water. He said the cap would make non-imported water non-marketable.
At the same time, he said that agreements have already been signed between the companies and airports for the period 2023-2026 for the sale of water.
At the same time, representatives of the CCCI and OEB said that there are no reasons to vote for the bill, while at airports there is a free option of drinking water. They spoke of a setback, claiming that Cypriot airports sell water at the second lowest price in Europe.
They also noted that 30% of revenues at airports are collected by the state, pointing out that companies will be forced to pay out of pocket to sell cheap water at airports. Serious reservations are also expressed by POVEK regarding the a priori ability of the Minister of Energy to set a ceiling by decree.
Voices for airports
The companies operating at Larnaka and Pafos airports also joined the chorus of reactions. On behalf of CTC – Airports, it was reported that Hermes, as the operator of the airports, offers free water to travellers, expressing its intention to increase the spaces for free water supply.
According to a company spokesperson, each product sold at airports the state receives 21.5%. He also said that in Cyprus water is cheaper than other EU countries, with the exception of Greece, where 500ml water is sold for 60 cents. At the same time, he noted that the Commission notes that in EU law there is no regulation of EU airport prices, calling for the non-application of the measure to airports, as the state will lose money.
In the same vein, the representative of Cyprus Airports, who argued that there is a full option for the passenger to choose from free water to water at the price of €4.75.
Consumers: Vote by July
On the other side, consumers and trade unions supported the bill, stressing the need to impose a cap on other products and extend it to other businesses.
At the same time, the Director of the Consumer Service Konstantinos Karagiorgis called on Parliament to approve the bill before Parliament closes for the summer recess. He clarified that the measure will apply in cases where the consumer has no alternative options in the markets and where there are problems in the pricing of products. A spokesman for the PSC stressed that the bill does not affect competition.
