Cape town: Eskom has confirmed that the two contractual disputes with Koeberg Nuclear Power Station contractor, Framatome, are being addressed through an agreed resolution process. This announcement follows media reports suggesting that the French energy company had secured a high court order compelling the power utility to pay approximately R1 billion due to contractual issues.
According to South African Government News Agency, Framatome was engaged for the Steam Generator Replacement Project at the nuclear power station located in the Western Cape. In line with the contract terms, disputes are initially referred to adjudication and, if unresolved, proceed to arbitration. Two disputes were adjudicated between December 2022 and February 2023. As Eskom was dissatisfied with the adjudicator's decisions, the issues were escalated to arbitration as per the agreed process. The arbitration took place from June to July 2025, with a decision expected in the last quarter of Eskom's financial year.
Eskom clarified that recent media reports might have conflated separate legal processes. It emphasized that no new payments are currently due and that all actions by Eskom have adhered to the applicable legal and contractual procedures. While Eskom disagreed with the adjudicator's decisions, it complied with the outcomes and completed payments by March 2024 as part of standard contract processes, not as penalties or fines.
Simultaneously, Eskom sought legal recourse by approaching the Cape High Court to have the adjudicator's decisions overturned due to procedural irregularities. The court delivered its judgment on 17 July 2025, over a year later than anticipated. Eskom is currently reviewing the judgment to determine the appropriate next steps. The power utility urged the public and media to trust the integrity of the resolution process, affirming its commitment to transparency and accountability.
Despite these disputes, Eskom highlighted that the core technical work of replacing the steam generators on Koeberg Unit 2 has been completed. This milestone is crucial for the safe and extended operation of the power station, contributing to the country's energy security.