diff --git a/spec/demand_spec.lua b/spec/demand_spec.lua
index 770d2674..9d4b28c1 100644
--- a/spec/demand_spec.lua
+++ b/spec/demand_spec.lua
@@ -91,7 +91,7 @@ describe("demand", function()
 		it(
 			"updateDemandFactor() adjust fees and reset demend factor parameters when consecutive periods at minimum threshold is hit",
 			function()
-				DemandFactor.currentDemandFactor = demand.getSettings().demandFactorMin
+				DemandFactor.currentDemandFactor = demand.getSettings().demandFactorMin - 0.1
 				DemandFactor.consecutivePeriodsWithMinDemandFactor = demand.getSettings().stepDownThreshold
 				DemandFactor.revenueThisPeriod = 0
 				DemandFactor.trailingPeriodRevenues = { 0, 10, 10, 10, 10, 10 }
diff --git a/src/demand.lua b/src/demand.lua
index 60da0c5e..8dbdcac4 100644
--- a/src/demand.lua
+++ b/src/demand.lua
@@ -86,12 +86,14 @@ function demand.updateDemandFactor(timestamp)
 	else
 		if demand.getDemandFactor() > settings.demandFactorMin then
 			local downAdjustment = settings.demandFactorDownAdjustment
-			local updatedDemandFactor = demand.getDemandFactor() * (1 - downAdjustment)
+			local updatedDemandFactor =
+				math.max(demand.getDemandFactor() * (1 - downAdjustment), settings.demandFactorMin)
+			-- increment consecutive periods with min demand factor
 			demand.setDemandFactor(updatedDemandFactor)
 		end
 	end
 
-	if demand.getDemandFactor() == settings.demandFactorMin then
+	if demand.getDemandFactor() <= settings.demandFactorMin then
 		if demand.getConsecutivePeriodsWithMinDemandFactor() >= settings.stepDownThreshold then
 			demand.resetConsecutivePeriodsWithMinimumDemandFactor()
 			demand.updateFees(settings.demandFactorMin)