The FIA's World Motor Sport Council has ratified proposals by the Formula 1 Strategy Group and Formula 1 Commission to simplify the power unit penalties in the sport.
Engine sanctions received widespread disapproval when some were given penalties they could not serve, such as McLaren's Jenson Button, who was given a 25 place drop in Austria.
With such a penalty came in-race sanctions, leading to drivers heading into a Grand Prix knowing they would have to serve a stop and go penalty if they could not fulfill their full grid drop.
"The simplification of the power unit penalties, ensuring that the most a driver can be penalised is to be demoted to the rear of the grid – this will eliminate penalties during the race for these infractions," read a statement.
Entering manufacturers will also receive an extra power unit compared to existing entrants and this will be applied retrospectively to Honda.
"New power unit manufacturers to F1 will receive an extra power unit for each driver to use throughout Grands Prix for the season, bringing the total to five – one more than the existing power unit suppliers. This will be applied retrospectively to Honda."
These regulations come into force with immediate effect.