Filenews 5 January 2025 - by Eleftheria Paizanou
The price of the water cap will be uniform at all points of sale included in the bill that has been under discussion for more than six months in Parliament.
This is despite the fact that the study conducted by an external firm on behalf of the Consumer Protection Service of the Ministry of Energy showed that at airports the price of the cap should have been different and in particular it would have been higher, due to the special regime in force, compared to the other points of sale included in the bill.
The Government, in an effort to prevent new reactions in Parliament but also for the sake of consensus, decided to finally accept that the price of the water ceiling in all areas should be uniform.
That is, after the approval of the bill by the Plenary of the Parliament, Energy Minister George Papanastasiou will proceed to set a single maximum price for water of 330 ml, 500 ml and 750 ml packages to be sold at airports, ports, sports venues, beaches, archaeological sites, museums, cinemas. in theatres, theme parks, zoos and hospitals.
The fixed price was a demand of the members of Parliament's Committee on Trade. By setting a single price cap at all points of sale, it is estimated that the bill will gain the required majority, as, during the discussions, MPs even of the co-governing parties had expressed some reservations and identified, as they claimed, grey areas. For this reason, the Ministry of Energy is revising the bills to "filter" the reactions.
It is recalled that the original bill provided that the water ceiling would be different at each point of sale, due to the particular characteristics and situations of each area. In fact, the government side during the discussions had argued that this model is also applied by other countries.
The name the second pitfall
The second hurdle that the ministry will have to overcome is that of imposing a cap on only one water brand (or other product, if necessary later), although the majority of parties demand that a greater number of brands be included in the cap.
The government side disagrees with including a water cap on 2-3 brands, as it argues that the market should remain open. In addition, he believes that even by imposing the water cap on only one brand, this will be touted for other companies to reduce their prices and reach the levels of the cap.
However, during the debate later this month in Parliament's Trade Committee, MPs will seek to find a formula according to which if the packages of water in the brand decided by the seller run out of shelves, there will be a second option for consumers.
Members do not want some sellers to take advantage of the shortage and not apply the cap. A competent source, speaking to "F", noted that the seller is obliged, in case all water packages with the ceiling from this brand are sold, to make sure to apply the cap to another water brand, so that the consumer continues to benefit from the measure.
Administrative fines
The bill also provides for the imposition of administrative fines on those who violate the law. In particular, if it is found that the company does not maintain a price list, and/or imposes higher prices than the maximum selling prices or submits false, incomplete, inaccurate or misleading information, or in case a person obstructs or obstructs the Competent Authority in the performance of its duties, then the Director has the power to: Order the offender to put an immediate end to the infringement and avoid a repetition of it in the future. It may also impose an administrative fine, depending on the nature, gravity and duration of the violation, of up to €10,000.
Moreover, in case of continuation of the violation, it imposes an administrative fine of up to €1,000 for each day of continuation of the violation. Finally, if the infringement has been terminated, it imposes an administrative fine depending on the nature, gravity and duration of the violation, which does not exceed €5,000.
In the public interest, the promotion of the measure
The Government believes that this measure will give consumers some breathing space from the high prices that are afflicting households. He argues that when the water cap is imposed and when the electronic platform e-kalathi starts its operation, the shielding of consumers will be strengthened, who will choose to shop for products at the lowest prices.
However, the Service, responding to the reservations expressed by the stakeholders involved, in a note to the Parliament assured that there is no question of increasing prices at other points of sale.
At the same time, he notes that there is no increased operating costs of obligated companies anywhere. He also argues that the state is promoting the bill for public interest purposes. He adds that there is no question of distinguishing between imported and Cypriot waters, adding that the bill refers to ensuring a single brand name per product that businesses offer for sale at points of sale.
At the same time, he notes that the provision of the bill for the setting of maximum prices by the Minister of Energy for a specific period of time is set to take into account the needs due to season and weather conditions. Besides, for this reason, after the approval of the bill and the issuance of the relevant decree by the competent minister, initially the ceiling will be imposed on airports and stadiums and in the process will be applied to other points of sale. For example, in theme parks and indoor beaches, the water cap will be imposed in the summer months.
In addition, the Consumer Service also gave an answer to the inclusion of the products in the basket. As he argued, this possibility is not in line with the philosophy of the bill concerning defined situations, i.e. the points where by object there is no competition for goods essential for the consumer. It also indicates that the bill concerns closed markets, where there is not enough competition by object.
At the same time, the competent authority clarifies that there can be no fixed legislation governing the maximum retail prices at specific points of sale and to which the minister will have the discretion at his discretion to add products. This, it added, cannot be implemented as it would constitute market intervention. It is emphasized that the water ceiling should be applied only for specific conditions and for a specific period of time.
