Price caps look set to be implemented on some rail fares for passengers travelling between Exeter and London after an intervention by the competition watchdog.

At present two train operators - First Group and Stagecoach - run services to the Devon city from London’s Paddington and Waterloo stations respectively.

But First Group’s recent win of the contract to run services out of Waterloo prompted the Competition & Markets Authority (CMA) to warn that the subsequent monopoly could result in service deteriorating and prices rising.

In a bid to avoid an in-depth Phase 2 investigation of the contract win by the CMA, First Group, and its partner on the franchise, Hong Kong-based MTR, were given the opportunity to provide their own resolution.