Filenews 10 December 2024 - by Eleftheria Paizanou
With the new year, the imposition of a cap on the selling price of water at specific points will finally be implemented, as the members of the parliamentary Committee on Commerce did not finish discussing the controversial bill.
During the discussion of the bill in the Commerce Committee, the government agreed to consider the Parliament's recommendation that the price of the cap be uniform at all points of sale of water. It is recalled that the bill provided that the price of the ceiling would be different from place to place.
Specifically, the competent Ministry through a specific formula would determine the price of the ceiling according to expenditure. At the same time, the price cap will not be imposed on all types of water but only on one brand, with Energy Minister George Papanastasiou saying that the trader should immediately be able to apply the cap to a second water brand when the first one runs out of store shelves.
MPs demanded that the measure be applied to all water brands, with the minister disagreeing. As Mr Papanastasiou said, the functioning of markets must remain free. "In this case we are trying through the legal way of the PSC and the Legal Service, so we choose at least one brand. We believe that when there is a cap brand on the shelf, if I were a merchant I would invite the other person to have a reduced price." In addition, he stressed that in this way the cap will be used as a trumpet to push other traders to keep prices down. However, the Minister also accepted the MPs' suggestion to apply the cap to yet another package.
New packaging will be included
The bill would impose a cap on bottled water in a 500 ml, 750 ml package and now a 330 ml package will be added. Points of sale that the Minister of Energy, based on the decree he will issue, will impose on businesses an obligation to apply retail price caps, are airports, ports, sports venues, beaches, archaeological sites, museums, cinemas, theatres, theme parks, zoos and hospitals.
By formula the price
Before the Trade Committee, the minister dismissed criticism that the positions of stakeholders were not taken into account during the consultation, pointing out that too many cases were included in the bill. We never said about universal implementation of the measure, we said about one or two packages that the minister will choose to be available at a maximum price," he added. As he said, the price will be determined on the basis of a specific formula, stressing that "the investigation has been completed, we are ready, we will probably choose a price that applies to all points."
He also said that the decree for legislative scrutiny has been sent to the Legal Service.
For his part, the Director of the Consumer Service Konstantinos Karagiorgis noted that the Service is ready to determine the price of the cap at specific points of sale. As he said, a study was carried out by a specific firm and the decree was prepared.
At the same time, the Minister said that the price should be uniform and the ceiling will not be the one that would be sold at the most expensive point of sale. "Let the seller make a profit from other products. Water at the wholesale price sells for 12 to 18 cents and no one will step on it. To choose a price that will be sustainable for all structures," he concluded.
DISY MP Nikos Sykas said DISY is in favour of the free market. AKEL MP Kostas Kostas said that important steps were taken since the Minister accepted some of the Parliament's suggestions. DIKO MP Panicos Leonidou wondered why there should not be a cap on all water brands.
Market intervention
The Minister responded immediately, saying that this constitutes intervention in the market and changes the philosophy of the bill. "The merchant will choose which brand will be capped and if the product of that brand runs out, he will have to cap another brand," he said. He assured that the Consumer Protection Service will conduct market controls and intervene, stressing that the best to control is the consumer.
MP Michalis Giakoumis said the bill will benefit consumers. Green MP Stavros Papadouris expressed his satisfaction that the Minister accepted the positions of the Parliament.
