The Competition and Markets Authority has said it regrets resorting to a price cap remedy for the energy industry.

Chair of the Competition and Markets Authority (CMA) energy market inquiry, Roger Witcomb, told Utility Week that the panel “sort of regrets” having to recommend a price cap for the industry, but that it will have the “most obvious and measureable effect”.

“We sort of regret having to do it because normally we tend not to go for price caps. But in this case, the case was so overwhelming,” he said.

“Clearly the price cap will have the most direct, obvious and measurable effect and that’s a big deal. It is nice to be able to hit a particular part of the detriment hard, predictably and soon, in the knowledge that as smart meters come in and we move on it will fall away of its own accord.”

The CMA published its remedies for the industry in June this year and included that a transitional price cap for prepay meters should be implemented until the full smart meter rollout has been completed.

Witcomb added: “It clearly will have an impact on competition in the sector today and it would be illogical for us to claim anything else. But our view was that there wasn’t much competition there anyway.”