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Setting an artificial upper limit less than the actual capacity. For example, in some uses a circuit breaker may have a derating factor of 80%, thus a 20A breaker is only loaded to 16A (1920W).

From http://www.theriac.org/DeskReference/viewDocument.php?id=194 :
The practice of limiting electrical, thermal and mechanical stress on parts, in a given design application, to levels that are below their specified ratings or their proven capabilities in order to enhance reliability.