BBC/SARA SMITHSouthern Water has agreed to pay compensation to householders and businesses who were left without a supply for up to six days in May 2024.
An estimated 32,500 properties in the Hastings area were left without water over the bank holiday weekend after a mains pipe located in remote woodland burst.
The company has now agreed to pay compensation at £50 for each 12 hours customers had no water, after previously saying they were not eligible.
Southern Water said at the time of the incident industry guidelines meant households did not qualify for compensation.
Helena Dollimore, who won the Hastings and Rye seat for Labour in the general election in July, said she was one of those affected.
“I lost my water supply for four days” she said, “the disruption we suffered in our community was huge.
“We had parents unable to change their babies’ nappies, we had people unable to cook and clean.
“You couldn’t flush the toilet, you couldn’t clean and wash up food, it’s only right you get compensation for that period.”
In a statement on Thursday Southern Water said regulator Ofwat’s guidelines at the time meant households did not qualify for compensation “due to the location and nature of the burst water pipe which caused the outage.”
Instead, the company said, it created a £1m goodwill fund to provide grants to local businesses, community groups and charities.
EDDIE MITCHELLAntonia Barton, chief customer officer at Southern Water, said: “We’ve carefully reviewed our position on compensation for Hastings customers, having taken time to listen to members of the community about the impact this awful incident had on them, their families and their businesses.
“Although we followed the correct procedures at the time we’ve decided it’s right that we go further for the people of Hastings”
The company said it has plans to spend £80m improving the water infrastructure around Hastings.
It said its offer of £50 for every 12 hours a customer was without supply was in line with new compensation rates, and double what would have been paid in 2024.
Affected households will be notified by letter by mid-March.
SOUTHERN WATERJulia Hilton, leader of Hastings Borough Council, said: “We welcome the investment Southern Water has committed.
“We want clear timescales and tangible evidence of improvement year on year and will continue to have regular meetings at councillor and officer level with the company to ensure Hastings is getting the best deal from them.”
But John Bownas, from the organisation Love Hastings, said businesses should receive more.
He said: “Many struggling businesses still remain massively out of pocket because the compensation they received last year in many cases was significantly less than their reduced takings over what should’ve been the busiest weekend of the year.”
