Eskom clarifies its issue with Koeberg nuclear power station contractor
In a significant development, the Western Cape High Court has ordered South Africa's state-owned power utility, Eskom, to pay over R1 billion to Framatome as compensation for a contractual dispute related to the Koeberg Nuclear Power Station's Steam Generator Replacement Project.
The dispute originated from Eskom's postponement of the 2022 Koeberg Unit 2 steam generator replacement, leading to a contractual breach claim by Framatome. After adjudication and court challenges spanning late 2022 to mid-2025, Eskom was ordered by the Western Cape High Court to pay the substantial sum.
The court's judgment, delivered on 17 July 2025, upheld the adjudicator's decisions as lawful and binding. Eskom had challenged these rulings, arguing procedural issues such as jurisdictional overreach, breach of natural justice, and failure to consider Eskom’s submissions. However, the court found that Eskom failed to comply with procedural timelines, undermining its challenge.
The core technical work, replacing the steam generators on Koeberg Unit 2, has been completed. Eskom is currently reviewing the court's judgment to determine the appropriate next steps. A decision on the arbitration, which took place in June to July 2025, is expected in the last quarter of Eskom's financial year.
Eskom remains committed to transparency and accountability throughout the resolution of these matters. The power utility encourages the public and media to trust the integrity of the process. It is important to note that no new payments are currently due from Eskom to Framatome as all payments made were part of standard contract processes, not as penalties or fines.
The completion of the steam generator replacement project helps ensure energy security for the country. Framatome was contracted for this project at the Koeberg Nuclear Power Station in the Western Cape.
Eskom is addressing contractual disputes with Framatome, the Koeberg Nuclear Power Station contractor. Media reports suggest that Framatome won a high court order for R1 billion from Eskom, but it is crucial to clarify that no new payments are currently due.
The disputes were resolved through an agreed resolution process, and the parties are now working towards resolving the remaining issues through the arbitration process. Eskom approaches all its contractual obligations with the utmost seriousness and will continue to act in accordance with legal and contractual procedures.
- The legal dispute between Eskom and Framatome, the Koeberg Nuclear Power Station contractor, regarding the Steam Generator Replacement Project, resulted in a high court order for R1 billion against Eskom.
- Despite media reports suggesting that new payments are due from Eskom to Framatome, it is important to note that all payments made were part of standard contract processes, not as penalties or fines.
- Moving forward, Eskom is engaging in an arbitration process to resolve the remaining issues with Framatome, demonstrating its commitment to faithfully adhere to legal and contractual procedures.
