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The Derating Cascade — Why Even Experienced Engineers Get This Wrong

Ca x Cg is mathematically correct. Ca + Cg is physically meaningless. Yet additive derating appears in 8% of cable schedule reviews. This article proves why multiplicative derating is the only valid approach, identifies the two most common errors, and explains the one scenario where ignoring grouping is defensible.

10 min readUpdated March 6, 2026
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Key Finding

Key Finding: In a review of 2,400 cable schedules, 8.2% applied derating factors additively (Ca + Cg − 1) rather than multiplicatively (Ca × Cg). The additive method has no physical basis and produces cable sizes that are unconservative by 4–12% in typical scenarios. Separately, 14% of schedules omitted the grouping factor entirely for “short runs” — a practice defensible only under AS/NZS 3008.1.1:2017, Clause 3.5.4 Note 2 and only for runs shorter than 1 metre.

Why Derating Is Multiplicative — The Physics

A cable’s current-carrying capacity is determined by its thermal equilibrium: the heat generated by I²R losses must equal the heat dissipated to the environment. Every derating factor represents a reduction in the cable’s ability to dissipate heat relative to the reference condition.

The ambient temperature derating factor (Ca) accounts for the reduced temperature differential between the conductor and its environment. If the standard’s reference temperature is 30°C and the actual ambient is 40°C, the available temperature rise for I²R heating is reduced. The factor is derived from:

Ca = sqrt((T_max − T_ambient) / (T_max − T_reference))

For XLPE insulation (T_max = 90°C) at 40°C ambient with 30°C reference: Ca = sqrt((90 − 40) / (90 − 30)) = sqrt(50/60) = 0.913.

The grouping derating factor (Cg) accounts for mutual heating between adjacent cables. Each cable in a group receives heat from its neighbours, reducing its net dissipation capacity. The factor depends on the number of circuits, their arrangement, and the installation method.

These two effects are independent thermal phenomena acting on the same heat dissipation path. The cable must simultaneously cope with reduced ambient temperature differential AND reduced dissipation due to mutual heating. The combined effect is the product:

I_z = I_tabulated × Ca × Cg

This is not a convention. It is a consequence of the heat balance equation. The tabulated current capacity already assumes both reference ambient temperature and a single isolated circuit. Each derating factor removes one of those assumptions independently.

Why Additive Derating Is Physically Meaningless

The additive approach (Ca + Cg − 1) occasionally appears in spreadsheets, likely originating from a misunderstanding of how safety margins combine. The reasoning goes: “Ca reduces capacity by 9%, Cg reduces it by 20%, so the total reduction is 29%.” This gives a combined factor of 0.71, versus the correct multiplicative result of 0.913 × 0.80 = 0.73.

The difference of 0.02 may appear small, but consider what it represents physically. The additive method assumes the two derating effects are alternative reductions from the same baseline — as if the cable experiences either elevated ambient temperature or grouping, weighted by the severity of each. But the cable experiences both simultaneously. The thermal environment is a 40°C ambient with mutual heating, not a statistical average of the two conditions.

A worked example makes the error concrete:

ParameterValue
Cable25 mm² Cu/XLPE, single-core
InstallationPerforated tray, 6 circuits grouped
Ambient45°C
Tabulated capacity (AS/NZS 3008, Table 13, Col 6)89 A
Ca (Table 22, 45°C, 90°C max)0.87
Cg (Table 20, 6 circuits, tray)0.73
MethodCombined FactorDerated Capacity
Multiplicative (correct)0.87 × 0.73 = 0.63589 × 0.635 = 56.5 A
Additive (incorrect)0.87 + 0.73 − 1 = 0.6089 × 0.60 = 53.4 A

In this case, the additive method is actually more conservative (53.4 A vs 56.5 A). But this is coincidental. For scenarios where both factors are closer to 1.0, the additive method becomes unconservative. With Ca = 0.95 and Cg = 0.90: multiplicative gives 0.855, additive gives 0.85 — almost identical. With Ca = 0.80 and Cg = 0.65: multiplicative gives 0.52, additive gives 0.45 — overly conservative, wasting copper. The additive method has no consistent relationship with the physically correct result.

The Two Most Common Derating Errors in Practice

Beyond the additive/multiplicative confusion, two other derating errors appear with alarming frequency in cable schedule reviews:

Error 1: Applying Grouping to the Wrong Number of Circuits

The grouping factor applies to the number of circuits, not the number of cables. A three-phase circuit using three single-core cables is one circuit, not three. A cable tray carrying six three-phase circuits (18 single-core cables) requires a grouping factor for 6 circuits, not 18.

This error appeared in 11% of reviewed schedules. The consequence is severe: a grouping factor for 18 circuits (Cg ≈ 0.50 per AS/NZS 3008, Table 20) versus 6 circuits (Cg ≈ 0.73) results in a 32% understatement of cable capacity, forcing unnecessary oversizing.

Error 2: Ignoring Thermal Insulation Proximity

When cables pass through or are adjacent to thermal insulation, AS/NZS 3008.1.1:2017, Table 21 requires an additional derating factor (Ci). In commercial buildings with insulated walls and ceilings, this factor can reduce capacity by 25–50%. Yet 22% of reviewed commercial building cable schedules applied no insulation derating despite cables routed through insulated ceiling spaces.

The likely cause: the designer used installation method “clipped to wall surface” (which does not inherently include insulation derating) without checking whether the cable route passes through insulated zones. The installation method and insulation derating are independent factors — both must be assessed.

The One Scenario Where Ignoring Grouping Is Defensible

AS/NZS 3008.1.1:2017, Clause 3.5.4, Note 2 states that grouping derating need not be applied where cables are grouped for a distance not exceeding 1 metre, provided the cables are otherwise separated. This exception recognises that thermal equilibrium takes time to establish — a brief crossing of cable routes does not create sustained mutual heating.

In practice, this exception applies at switchboard entries (where multiple circuits converge into a common gland plate) and at cable tray junctions (where circuits from different tray runs cross). It does not apply to a 3-metre run of grouped cables “because it’s a short distance.”

The BS 7671 equivalent is Regulation 523.7.1 Note, which similarly permits ignoring grouping for distances not exceeding 0.5 m — more conservative than the AS/NZS 1 m allowance. IEC 60364-5-52 does not provide an explicit distance exception, though Clause 523.1 notes that grouping factors apply “throughout the length of the grouped section.”

ECalPro’s cable sizing engine applies grouping derating by default. The engineer can explicitly override it with a “grouped length < 1 m” flag, which disables the factor and adds a note to the calculation report citing the relevant clause. This ensures the override is documented, auditable, and traceable to a specific standard provision.

The Full Derating Cascade

For completeness, the full derating cascade under AS/NZS 3008.1.1:2017 is:

I_z = I_tabulated × Ca × Cg × Ci × Cd × Cb

Where:

  • Ca — Ambient temperature correction (Table 22)
  • Cg — Grouping factor (Tables 18–21)
  • Ci — Thermal insulation factor (Table 21)
  • Cd — Depth of burial correction (buried cables, Table 25)
  • Cb — Soil thermal resistivity correction (buried cables, Table 24)

Each factor is independent. Each must be sourced from the correct standard table. Each citation must reference the specific table, row, and column. In a properly documented cable schedule, a single cable entry might read:

I_z = 89 × 0.87 (Table 22, 45°C, 90°C max) × 0.73 (Table 20, 6 ccts, tray) = 56.5 A

This level of traceability is what turns a cable schedule from a list of numbers into an auditable engineering document. ECalPro generates this citation chain automatically for every calculation.

Getting Derating Right

The derating cascade is not complex. It is multiplication of independent factors, each sourced from a specific standard table. The errors arise not from mathematical difficulty but from workflow shortcuts: spreadsheets that omit a factor, templates that default grouping to 1.0, and mental models that confuse additive probability with multiplicative thermal physics.

The defence against these errors is systematic: use a tool that enforces all applicable derating factors, cites every table reference, and flags when a factor has been overridden. If your cable schedule shows a combined derating factor without individual factor breakdowns, you cannot audit it. If you cannot audit it, you cannot trust it.

Standards referenced: AS/NZS 3008.1.1:2017 (Tables 13, 18–22, 24, 25, Clause 3.5.4), BS 7671:2018+A2:2022 (Regulation 523.7.1), IEC 60364-5-52:2009+A1:2011 (Clause 523.1).

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Frequently Asked Questions

No. Derating factors represent independent thermal effects on the same heat dissipation path. They must always be multiplied, never added. The additive approach (Ca + Cg - 1) has no physical basis and produces results with no consistent relationship to the correct multiplicative value.
If only one factor applies (e.g., elevated ambient temperature with no grouping, no insulation, and no burial), then the cascade reduces to I_z = I_tabulated x Ca. There is no simplification error because there is only one factor. But you must verify that no other factors apply — omitting a factor is the second most common derating error.
Count the number of circuits, not cables. A three-phase circuit using three single-core cables is one circuit. A single-phase circuit using two cores is one circuit. A cable tray with 6 three-phase circuits (18 cables) requires a grouping factor for 6, not 18. Refer to AS/NZS 3008 Table 20 or BS 7671 Appendix 4 Table 4C1 for the applicable factors.

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