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Five-year efficiency demands placed on Network Rail by the rail watchdog have prompted a dubious response.

The Office of Rail Regulation's (ORR) period review, which has taken place over the last three-and-a-half years, reveals its expectations of Network Rail from 2009 to 2014.

It wants to see Network Rail cope with a 22.5 per cent increase in passenger demand and expects to see it advance two-thirds towards the efficiency levels it expects to see.

Improvements in safety and reduced levels of disruption are also required, while expenditure should be eight per cent less than that proposed by the company.

Network Rail has reacted with caution to today's review. Its director of planning and regulation, Paul Plummer, said it would have to carefully study the proposals to assess its implications.

"Continued high levels of investment in our railway network are to be welcomed but we must be sure that these clearly challenging targets and levels of investment set out today by the ORR are both achievable and adequate to meet the growing demands being placed on our railway," he said.

"We must satisfy ourselves that what is proposed can be delivered and that it will be enough to solve the issues of capacity and deliver the much needed investment we need to build a bigger, better railway."

After the ORR publishes its final price lists on December 18th Network Rail will have until February 5th to decide whether it accepts the conclusions.

If it does not the watchdog has threatened to refer its determination to the Competition Commission.