Eskom has provided clarity regarding recent media speculation over its contractual disputes with French nuclear contractor Framatome, confirming that no penalties or fines are due and that the issues are being managed through the proper dispute resolution channels.
The two disputes stem from the Steam Generator Replacement Project at Koeberg Nuclear Power Station, which has now seen significant progress, including the completion of generator installation on Unit 2.
According to Eskom, the original adjudication on the disputes took place between December 2022 and February 2023. As Eskom was dissatisfied with the outcome, both matters were escalated to arbitration — the next step as defined in the contract. Arbitration hearings concluded in July 2025, and a final ruling is expected in the last quarter of Eskom’s financial year.
“All Eskom actions have followed the legal and contractual process,” the utility stated. “No new payments are due, and prior payments were made as required — not as penalties or fines.”
Legal Challenge at Cape High Court
In a separate but related development, Eskom approached the Cape High Court in March 2023 seeking to overturn the adjudicator’s decisions on grounds of procedural irregularities, without challenging the merits of the rulings. The court’s judgment was only delivered on 17 July 2025, more than a year later. Eskom is now reviewing the judgment before deciding on its next course of action.
Koeberg Project Milestone Achieved
Despite the legal wrangling, Eskom confirmed that the steam generator replacement on Koeberg Unit 2 has been successfully completed, marking a significant step toward extending the life and improving the performance of South Africa’s only nuclear power station.
“This milestone supports our long-term goal of ensuring energy security for South Africa,” Eskom noted.
Eskom has urged the public and media to avoid confusion caused by overlapping reports and to rely on verified statements. The utility remains committed to transparency, accountability, and resolving disputes through proper legal mechanisms.
