The invention relates to a power distribution system comprising a power providing device (3) for providing power and a powered device (4, 5, 6) like a luminaire to be powered by the power providing device. The power providing device and the powered device are operable in a maximum power mode and a normal operation mode, wherein in the maximum power mode the powered device consumes an amount of power maximally consumable by the powered device and the power providing device measures the power consumed by the powered device. This measured power allows for an allocation of an amount of power in the operational mode, which is really maximally needed, wherein it is not necessary to allocate a larger amount of power, which is large enough to consider, for instance, a maximally assumed length of an electrical connection (8) connecting the devices, thereby improving the power budget allocation.