Water board refused build over agreement

I'd greatly appreciate anyone's help or feedback. We have been given planning permission for a single storey extension to the rear of our property which will cover our current patio.
We knew we would have to gain permission from Southern Water to build over their sewer and manhole cover which unfortunately falls in the middle of the proposed plans. £1k and 8-weeks later, they have refused us permission as you are no longer allowed to have a manhole cover within a property and also our drain has a 'change of direction' from our property to our neighbours. We have already appealed and been told no.
This seems incredibly unfair to us as all our neighbours have similar extensions / conservatories which were built before the laws changed 3 years ago, meaning water boards now own the drains on the whole of your property where as previously it was only up to your boundary.
I would appreciate any help or advice, is there anyone else we can appeal to? We cannot afford to move and require the extra space.
Thank you.

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