The House on Thursday passed a law granting the commerce minister the authority to issue decrees setting a price cap on bottled water at designated points of sale.

The government bill passed with 21 votes for, four against, while 13 MPs abstained.

The commerce minister now has the power to issue decrees fixing the maximum retail price of water for businesses “at certain points of sale, where objectively sufficient competition cannot exist”.

This includes points of sale within airports, ports, sports premises, beaches, archaeological sites, museums, healthcare facilities, theatres, cinemas, theme parks and zoos.

It does not apply to canteens, bars, cafes, restaurants, supermarkets, kiosks or vending machines.

The retail products covered by the price ceiling are: 500ml and 750lm water bottles, as well as potable water sold in glasses of 500ml and 750ml.

The price cap applies only where the products are sold to ‘standing customers’ – that is, customers who are not seated at a table and getting waiter service.

The stated purpose of the law is to prevent price gouging, by compelling merchants to generate what is referred to as ‘a reasonable profit’ on these products.

It also provides for prison sentences and fines for violations. A court may hand down a prison sentence of up two years, or a fine up to €15,000.

During debate of the bill earlier in committee, some MPs complained about the government interfering with the free market.