Moderator, Iberia Airlines, Airport Lounges, and Ambassador, British Airways Executive Club
Join Date: Feb 2010
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Indeed I would understand that both compensation and refunding are payable. BA's only argument would potentially be that as soon as you threw in the ticket you were no longer a customer, and your delay is therefore zero, but personally I think that's clearly no what the regulation implies. There are plenty of points in the regulation where either/or conditions apply, including the refunded ticket OR re-routing. No such OR statement applies on compensation.
If you go to the Forum's Dashboard there is an EC261 thread with a lot more information which will help you, and what you should do now.