No fines or penalties over Koeberg delays, Eskom says

Eskom has sought to clarify that 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.

The two disputes stem from the Steam Generator Replacement Project of Unit 2 at Koeberg Nuclear Power Station, which has now seen significant progress, following problems that contributed to a bout of stage 3 load shedding in March.

Steam generators

Framatome had taken over the contract to supply and install replacement generators at the power plant’s two reactor buildings from Areva NP in 2018.

The recent Long-Term Operation (LTO) programme for Unit 2 included the replacement of three steam generators, extensive inspections, and refuelling activities, ensuring continued safe and efficient performance.

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Eskom needed to replace the plant’s six steam generators – three in each of its two units – to prolong its life by another 20 years.

Media reports

Eskom issued a statement on 21 July, following media reports, that the utility 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.

According to reports, the Western Cape High Court agreed with the findings of an adjudicator who investigated the delays two and a half years ago, ruling that Eskom was at fault for the stoppage of work and had to pay for breaching its contract.

Disputes

The utility’s spokesperson, Daphne Mokwena, said the two disputes were adjudicated between December 2022 and February 2023.

Mokwena said in accordance with the contract, disputes are first referred to adjudication and, if not resolved, to arbitration.

“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.

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“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,” Mokwena said.

Disagreement

Mokwena added that although Eskom disagreed with the adjudicator’s decisions, the utility 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. At the same time, in March 2023, Eskom approached the Cape High Court to have the adjudicator’s decisions set aside due to procedural irregularities.”

Mokwena said the court only delivered its judgment on 17 July 2025, over a year late.

“Eskom is currently reviewing the judgment to determine the appropriate next steps. We encourage the public and media to trust the integrity of this process. Eskom is following the proper legal channels to resolve these matters responsibly, and we remain committed to transparency and accountability throughout.

“Most importantly, despite these disputes, the core technical work, replacing the steam generators on Koeberg Unit 2, has been completed. This is a major milestone that contributes to the safe and extended operation of the power station, helping to ensure energy security for the country,” Mkowena said.

Eskom stated that it anticipates a decision on the arbitration hearing in the last quarter of its financial year.

Koeberg

Koeberg’s units 1 and 2 have undergone life extension exercises.

In July last year, the National Nuclear Regulator (NNR) granted Eskom a licence to continue operating Koeberg Nuclear Power Station Unit 1 until 21 July 2044.

As a result, Koeberg Unit 1 is expected to contribute over 930MW to the grid for another 20 years,” Mokwena said.

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