The regulations have been introduced by the Government and follow Ofwat's recommendations of how GSS should be improved for customers.
The changes will ensure customers normally receive at least £150 if their building is flooded by sewage from a public sewer in England & Wales.
Under the Guaranteed Standards Scheme (GSS) water and sewerage companies must make automatic payments to customers when their performance falls below a certain standard.
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Andrew Dunn, Ofwat's Director of Consumer Protection, said: "We recognise that payments can never reimburse customers for the distressing problems they experience when they are flooded with sewage.
"These payments are not designed to take the place of insurance. But they are recognition of a service failure by the company.
"As well as benefiting from these new rights customers can also help to avoid flooding by disposing sensibly of fat and other items which can block sewers."
Under GSS, companies are exempt from making payments when flooding is due to exceptional weather conditions or blockages and other problems with the customer's drain.
Ofwat will be consulting this month on guidance to help customers and companies understand when the weather exemptions are likely to apply.
(CD/JM)
