FirstGroup will cap Exeter fares to ease watchdog fears

Train operator FirstGroup has offered to cap fares between London and Exeter to soothe competition fears over price hikes for hundreds of thousands of passengers using the route.

The Competition and Markets Authority had expressed concern following the recent award of the new South Western franchise to a consortium of First and MTR, which runs trains to Exeter out of Waterloo station.

But First also operates Great Western Railway trains to Exeter from Paddington station.

South Western’s longer services cost less, with a day return to Exeter St David’s costing £72.60 compared with a £107.50 return on GWR.

First has put forward proposals to cap unregulated fares — advance and off-peak sales — on both franchises to protect the 500,000 passengers a year using the route. Prices will only rise in line with costs on comparable routes.

The CMA said there were “reasonable grounds” to believe that the proposals would ease its concerns and avoid an in-depth competition probe into the franchise award, although it will make its final decision in September.

A FirstGroup spokesman said: “We will continue to work with it over the coming weeks as the CMA launches its public consultation. We anticipate that our proposal will resolve this issue to its satisfaction.”