23:32
Tieng Anh Vui
Network Rail has been told by the rail regulator that it must find savings of £2bn over the next five years.
But the Office of Rail Regulation (ORR) said the cost cuts must not come at the expense of safety.
It has also set tougher targets for punctuality with a demand for at least nine out of ten trains running on time on all routes.
Network Rail welcomed the proposals and said it would respond in September, once it had analysed the findings.
The ORR said the cost savings should be achieved by better implementation of new technologies, better management of the railways and more efficient ways of working.
It added that it approved a £12bn plan to enhance capacity to deal with the 14% anticipated increase in passengers by 2019.
ORR chief executive Richard Price said the "industry must continue to improve its efficiency to reduce its dependence on public subsidy".
"Passengers will benefit from increases in capacity through a major programme of enhancements and improvements in punctuality, tackling in particular the worst-performing lines."
"Not only that, we are proposing that rail users should have more say in what enhancements to the railways are delivered and how," he added.
A Network Rail spokesperson said:
"There is no question that our railway needs to sustain the high levels of investment seen in recent years if we are to continue expanding the railway to provide for the ever growing numbers of passengers and trains."
"Getting the balance right in making the choices between performance, growth and value for money is critical if we are to build on efficiency savings of around 40% achieved over the last two control periods."
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