Eskom Sets Record Straight on Koeberg Steam Generator Dispute

No fines, no penalties, just process, says power utility amid Koeberg saga

South Africa’s embattled power utility, Eskom, is once again in the spotlight, but this time, it’s pushing back against what it calls “confused media reports” about a billion-rand legal dispute over delays at the Koeberg Nuclear Power Station.

While headlines recently screamed that Eskom was ordered to pay more than R1 billion to nuclear contractor Framatome, the truth, according to Eskom, is a little more nuanced. In fact, the power utility insists it hasn’t been fined, and there are no penalties due. Rather, the payments were part of a standard, if messy, legal process.

Where the dispute began

At the heart of the drama lies the Steam Generator Replacement Project at Koeberg’s Unit 2—a critical maintenance and upgrade operation meant to extend the life of South Africa’s only nuclear power station by another two decades.

Framatome took over this contract from Areva NP back in 2018, with the goal of replacing six ageing steam generators across both reactor units. It’s part of Eskom’s Long-Term Operation (LTO) strategy to keep Koeberg safe and functional until at least 2044.

But the project hit turbulence. Delays crept in, and by March 2023, South Africans felt the sting in the form of stage 3 load shedding.

The legal knot

According to Eskom spokesperson Daphne Mokwena, two specific disputes with Framatome were referred to adjudication between December 2022 and February 2023, as outlined in their contract. When Eskom disagreed with the adjudicator’s findings, they escalated the matter to arbitration, which has already taken place, with a decision expected by early 2026.

Despite disagreeing with the adjudicator, Eskom complied and made interim payments by March 2024. But the utility also asked the Cape High Court to set aside the adjudicator’s ruling, citing procedural flaws. That judgment only came down on 17 July 2025 over a year later.

Cue the confusion.

Eskom: We paid, but not because we were fined

“The payments made were not penalties or fines,” Mokwena emphasized. “They were in accordance with the contract and the interim implementation of adjudicator outcomes.”

She added that the latest court judgment is being reviewed, and Eskom will decide on next steps in due course.

But the utility is firm on one thing: it’s following the legal playbook to the letter.

Progress amid the noise

Lost in the legal noise is the fact that, despite the delays and courtroom drama, the core technical work at Koeberg has been completed. Unit 2’s steam generators have been successfully replaced, ensuring it can continue operating safely for years to come.

Meanwhile, Unit 1 already received the green light from South Africa’s National Nuclear Regulator to operate until 2044. That means more than 930MW of power will continue flowing into the national grid from just that one unit—something Eskom says will be critical in stabilizing the country’s long-term energy supply.

Public trust and energy fatigue

With load shedding now as South African as braais and bakkies, it’s no wonder the public is wary. When stories break about massive court rulings and billion-rand payouts, it understandably raises alarm bells.

But Eskom’s message is clear: don’t confuse the legal process with failure.

It’s a complex tangle of adjudication, arbitration, and contractual compliance and yes, it’s unfolding slower than most would like. But the utility insists it is playing by the rules, and more importantly, that the work itself is done.

Whether that assurance is enough for an energy-fatigued nation remains to be seen.

Despite media reports to the contrary, Eskom hasn’t been fined or penalized over delays at Koeberg. The payments made were part of a normal contractual dispute resolution process with nuclear contractor Framatome. While legal wrangling continues, the key upgrade to Unit 2 has been completed, a major milestone in securing South Africa’s nuclear energy future.

{Source: The Citizen}

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