Eskom provides clarity on dispute resolution process of two issues with Framatome: no penalties or fines due

Tuesday, 22 July 2025: Eskom confirms that the two contractual disputes with Framatome, the contractor for the Steam Generator Replacement Project at Koeberg Nuclear Power Station, are being addressed through the agreed resolution process. 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.

Although Eskom disagreed with the adjudicator’s decisions, the company 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 (independent of the merits of the

decisions). 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.

ENDS