Eskom Clarifies R1 Billion Dispute with Framatome Over Koeberg Project

The utility has confirmed that the disputes are being handled in accordance with contractual procedures and that no new payments are currently due.

Eskom has moved to clarify the nature and status of its legal and contractual disputes with French energy contractor Framatome, following widespread media reports suggesting the state-owned power utility had been ordered to pay over R1 billion. These reports stemmed from ongoing contractual disagreements linked to the Steam Generator Replacement (SGR) Project at Koeberg Nuclear Power Station, South Africa’s only nuclear facility.

The utility has confirmed that the disputes are being handled in accordance with contractual procedures and that no new payments are currently due.

Background of the Dispute

Framatome, a subsidiary of Électricité de France (EDF), was awarded the critical contract to replace steam generators at Koeberg’s Unit 2. This work is part of a broader life-extension programme intended to keep the nuclear station operational beyond its original decommissioning date.

Two disputes related to this project were adjudicated between December 2022 and February 2023. Eskom, disagreeing with the outcomes of the adjudications, escalated both matters to arbitration—an action permitted under the terms of the contract. The arbitration process was conducted between June and July 2025, and a final decision is expected in the last quarter of Eskom’s 2025/2026 financial year, which ends in March 2026.

Court Proceedings and Media Misinterpretation

According to Eskom, some media outlets have conflated different legal processes, incorrectly suggesting that the utility has been ordered to make new payments. The utility stressed that all prior payments—completed by March 2024—were made in compliance with the adjudicator’s decisions, not as penalties or fines.

The power utility has also initiated separate legal proceedings in the Cape High Court, seeking to set aside the adjudicator’s rulings on procedural grounds, independent of the merits of those decisions. Eskom argues that procedural irregularities compromised the integrity of the adjudications.

“The Cape High Court only delivered its judgment on 17 July 2025, more than a year after the matter was filed,” Eskom stated. “We are currently reviewing the judgment to determine our next course of action.”

Transparency and Legal Integrity

Eskom has assured the public that it is committed to full transparency and due legal process in handling the matter. The utility emphasized that its actions have adhered strictly to contractual and legal frameworks established for dispute resolution.

“Eskom is following the proper legal channels to resolve these matters responsibly,” the utility noted, urging media outlets to avoid premature conclusions and respect the complexity of contractual arbitration.

Technical Progress at Koeberg

Despite the legal entanglements, Eskom confirmed that the Steam Generator Replacement on Koeberg Unit 2 has been completed—a significant technical achievement. The project forms a key part of efforts to extend the operational life of the Koeberg Nuclear Power Station, which has been in service since the mid-1980s.

“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,” Eskom stated.

Looking Ahead

With arbitration decisions pending and legal interpretations still under review, Eskom’s clarification aims to quell misinformation and reinforce its stance as a public entity committed to both accountability and energy sustainability.

The outcome of the arbitration could have broader implications for how South Africa manages large-scale infrastructure contracts with foreign partners. As the country continues to confront energy supply challenges, the integrity and performance of its major generation assets—especially Koeberg—remain a critical focus for the nation’s energy security.