Eskom denies penalties in Koeberg project contract dispute
Eskom has clarified that there are no penalties or fines owed in its ongoing contractual dispute with French nuclear contractor Framatome, dismissing speculation that emerged in recent media reports.
The power utility confirmed on Tuesday that two unresolved issues relating to the Koeberg Nuclear Power Station’s Steam Generator Replacement Project are currently undergoing arbitration.
This follows an initial adjudication process between December 2022 and February 2023, during which Eskom challenged the outcomes.
"As Eskom was not satisfied with the adjudicator’s decisions, the two matters were escalated to arbitration as per the agreed process," said Eskom spokesperson Daphne Mokwena.
The arbitration proceedings took place from June to July this year, with a final decision expected in the last quarter of Eskom’s financial year.
Mokwena stressed that all actions taken have adhered to contractual and legal protocols, and that interim payments made to Framatome by March 2024 were in line with adjudication rulings — not penalties or fines.
"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."
Despite the disputes, Eskom states that the critical technical milestone of replacing the steam generators on Koeberg Unit 2 has been successfully achieved.
"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," Mokwena added.
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