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Engine peak power and regulation limited power are two different thing. You can have engine with 1.000 HP, but you must limit it at 700HP.
What is the point?
If you oversize the engine and limit it to 700 HP, then you can have that 700 HP all the time on the wheels, between the gear shifts.
We can also see this phenomenon with fuel flow restriction regulations, some were very loud (@knighty comes to mind ) here how NA engine in Rebellion won't be competitive because of magical "torque" and efficiency that turbo engines have. Even the regulators didn't believe it, so they have a separate EoT for NA engine, but as it turned out not much (is there any?) of difference was necessary for them to be competitive.
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