They paid just under 1500 euros in compo and also rescheduled our flights. The claim covered the additional accommodation and meal costs as well as car hire for the extra week we were grounded. We kept all receipts. I used a template letter from the ATUC in the UK. The technicalities are in the text below, note the bolded text at the end. They paid our claim in full.

The EU rules that state that I should have been assisted by yourselves are in Regulation (EC) 261/2004. In this Article 5 states that in the case of cancellation or delay of more than one day I am entitled to be reimbursed or re-routed under Article 8 and also offered assistance, including accommodation, meals and transport under Article 9.Article 9 states:1. Where reference is made to this Article, passengers shall be offered free of charge:(a) meals and refreshments in a reasonable relation to the waiting time;
(b) hotel accommodation in cases
— where a stay of one or more nights becomes necessary,
or — where a stay additional to that intended by the passenger becomes necessary;
(c) transport between the airport and place of accommodation (hotel or other).2. In addition, passengers shall be offered free of charge two telephone calls, telex or fax messages, or e-mails.3. In applying this Article, the operating air carrier shall pay particular attention to the needs of persons with reduced mobility and any persons accompanying them, as well as to the needs of unaccompanied children.Under Article 5 part 3, airlines are able to avoid paying compensation in accordance with Article 7 in the case of 'extraordinary circumstances', but this extraordinary circumstances clause does not apply to the entitlement to assistance under Article 9.