It is a surge damper. It stops the initial force from the tap.
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Yes it is a surge damper, but its function is not quite what you have described.
The problem it solves is to prevent mixer taps and particularly showers from alternately pulsing with very hot water and the selected temperature when the cold pump is controlled by a pressure switch and whilst delivering water it is able to to generate enough excess pressure to cause its control switch to operate.
What happens is when the water system pressurises enough the cold pump is turned off and the cold water stops flowing instantly. However the hot water tank always has a small air cap which has been pressurised and continues to deliver the hot water even though the cold has stopped.
The hot water back pressurises the cold system through the taps mixing valve and prevents the the pump from turning on whilst the air cap continues to expand and push hot water out and drops its pressure, this eventually allows the pump to turn on again and restores the cold flow until it exceeds the pressure switches threshold.
The surge damper simply provides a similar air cap for the cold water side of the system, and this helps to match the pressure decay of the hot system and keeps both hot and cold systems in step with each other.