The Western Cape High Court has ordered Eskom to pay a staggering R256 631.358 to French contractor Framatome.
This news comes after a heated dispute over a construction contract for the replacement of steam generators at Koeberg power station.
According to Acting Judge Williams, the case stems from a 2014 contract between the power utility and Framatome (then Areva NP) for replacing steam generators at Koeberg’s Unit 2 during a planned outage.
Tensions flared when Eskom postponed the work in March 2022, citing operational needs, which triggered a compensation dispute.
Framatome referred the matter to adjudicator Peter Ramsden, whose decisions in December 2022 and March 2023 awarded the contractor significant sums.
Eskom challenged the rulings, claiming that they were invalid due to jurisdictional overreach and breaches of natural justice.
Eskom argued that the adjudicator ignored its submissions and failed to provide reasoned decisions, but the court found no merit in these claims.
Adjudicator within his contractual mandate
Williams dismissed Eskom’s objections, affirming the adjudicator’s decisions.
“The adjudicator’s rulings were within his contractual mandate, and Eskom’s failure to comply with procedural timelines undermines their challenge,” Williams stated.
“The evidence supports Framatome’s entitlement to compensation for losses incurred due to Eskom’s decision to halt the project.”
The ruling enforces Framatome’s counter-application, ordering Eskom to pay R256 631.358 plus interest and inflation adjustments for costs related to mobilisation, work stoppage, and equipment storage.
The judgment exposes Eskom’s precarious financial position, with the state-owned power utility already grappling with debt and operational challenges.
The ruling also raises questions about future infrastructure projects, with fears of escalating costs and delays.
Meanwhile, the Minister of Electricity, Kgosientsho Ramokgopa, said he wanted electricity prices brought down.
Ramokgopa further said that at current rates, the price of electricity was unsustainable and was leading to energy poverty.
“It’s dealing a blow to the disposable income of households,” Ramokgopa said.
ALSO READ: State must write off unpayable R100bn municipal Eskom debt, economist says
