A new law on water price cap regulation in heavy tourist areas will roll out in Cyprus next year. The aim? To impose a fixed limit on the selling price of bottled water across specific venues. Though meant to address price disparities, the bill sparked debates within the Parliamentary Commerce Committee and among market stakeholders.
What Does the Bill Say?
The initiative initially proposed price caps differing by location, calculated through a government formula based on operational expenses. However, the government recently agreed to rethink this plan after lawmakers suggested a single cap across all selling points.
Key features of the bill include:
- Applicable to bottled water of 330ml, 500ml, and 750ml sizes.
- Fixed-price points for bottled water sold in highly trafficked spots, such as airports, ports, beaches, museums, archaeological sites, entertainment venues, etc.
Consumers expressed enthusiasm about the water price cap: “It’s about time they did something about water prices at airports,” said Maria, a tourist from Italy. “I paid nearly triple for the same bottle I bought at the local store!”
“It’s good to know something as basic as water won’t drain my wallet while travelling,” said Jane Coxon from London.
Limiting the Market or Guiding It?
The law grants sellers the choice of one capped brand. If the selected brand runs out, the cap would then extend to another brand.
“We’re not here to upend the market,” said Minister of Energy George Papanastasiou. “This law is a compromise so that at least one affordable option is always available. A capped price acts as bait—encouraging competitors to lower prices voluntarily.”
He added that wholesale water costs retailers as little as 12 to 18 euro cents per bottle. “Nobody’s going broke with this water price cap. Sellers can still turn profits from other products,” he noted.
The Consumer Protection Service will monitor compliance in the market. “We’ve prepared thoroughly, conducted studies, and drafted fair pricing guidelines,” said its director, Konstantinos Karagiorgis, during a briefing.
Still, Papanastasiou underscored that consumers hold the real power in influencing market behaviour. “The best inspector isn’t the government—it’s the shopper. If a vendor doesn’t follow the cap, buy elsewhere and let us know.”
However, a visitor from Berlin, Dieter Meier, asked, “How will tourists even know about this? Will there be an app or hotline to report complaints?”
This law could provide much-needed relief from marked-up water prices in high-demand locations for tourists heading to Cyprus. With implementation just around the corner, all eyes will be on how the cap plays out for consumers and businesses.
