Eskom says no penalties, fines due in relation to dispute resolutions process with Framatome
Power utility Eskom says two contractual disputes with Framatome, the contractor for the Steam Generator Replacement Project at the Koeberg nuclear power station, are being addressed through agreed resolution processes.
In accordance with the contract, disputes are first referred to adjudication and, if not resolved, to arbitration.
"Two disputes were adjudicated between December 2022 and February 2023. As Eskom was not satisfied with the adjudicator’s decisions, the two matters were escalated to arbitration as per the agreed process. The arbitration was held from June to July 2025, and a decision is expected in the last quarter of Eskom’s financial year.
"Recent media reports appear to have mixed separate legal processes. To clarify, no new payments are currently due, and all actions taken by Eskom have been in line with the applicable legal and contractual procedures," the utility notes in a July 22 statement.
Eskom issued the statement following media reports, on July 21, that Eskom had been ordered by the high court to pay more than R1-billion to Framatome over delays to the Steam Generator Replacement Project at Koeberg.
Eskom further points out that it disagreed with the adjudicator’s decision but still complied with the requirement to implement the outcome and made payments in the interim.
"All payments had been made by March 2024 as part of standard contract processes - not as penalties or fines," it states.
The utility adds that it had also, in March 2023, approached the Cape High Court to have the adjudicator’s decisions set aside owing to procedural irregularities (independent of the merits of the decisions). The court only delivered its judgment on July 17.
"Eskom is currently reviewing the judgment to determine the appropriate next steps," it states.
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