A local authority can set a targeted rate for the wastewater services it provides, based on its funding impact statement. You can think of a targeted rate as a special charge for a specific service. The local authority calculates this rate, and it can be a fixed charge per unit of wastewater.

The local authority provides wastewater services, which is a term that has a specific meaning given in section 4 of the Local Government (Water Services) Act 2025. This means that when you hear the term "wastewater services", it refers to the services defined in that Act.

A local authority sets this targeted rate to fund its wastewater services, and it does so in accordance with its own funding impact statement.