FORM 6-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                            Report of Foreign Issuer


                      Pursuant to Rule 13a-16 or 15d-16 of
                       the Securities Exchange Act of 1934


                                September 21, 2004


                               BRITISH ENERGY PLC
                               (Registrant's name)


                               3 Redwood Crescent
                                    Peel Park
                              East Kilbride G74 5PR
                                    Scotland
                    (Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.

                          Form 20-F..X.. Form 40-F.....

Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                               Yes ..... No ..X..

If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):



                                 Exhibit Index

The following document (bearing the exhibit number listed below) is furnished
herewith and is made a part of this Report pursuant to the General Instructions
for Form 6-K:

Exhibit       Description

No. 1         RNS Announcement, re: Section 198 Notice dated 21 September, 2004

21 September 2004

                               British Energy plc

UK COMPANIES ACT 1985 - SECTIONS 198-203 - British Energy plc (the "Company")

The Company has received notice as follows:

1.   That at close of business on 02 September 2004,  Brian J. Stark of business
     address  3600 South Lake Drive,  St.  Francis,  Wisconsin  53253,  USA, was
     interested in a total of 49,841,175 shares of the Company.

2.   On 20 September 2004, his interest  increased (by way of further purchases)
     so  that he  became  interested  in a total  of  58,547,425  shares  of the
     Company. Of these 58,547,425 shares:

     (A)  the interest in 43,910,569 shares arose from the holding registered in
          the name of Shepherd  Investments  International  Ltd, with registered
          office c/o HWR Services Limited, Craigmuir Chambers, P.O. Box 71, Road
          Town, Tortola,  British Virgin Islands ("Shepherd"),  which is managed
          by Stark Offshore Management LLC, with registered office at 3600 South
          Lake Drive, St. Francis,  Wisconsin 53253, USA ("Stark Offshore").  Mr
          Stark  controls  at  least  one-third  of the  voting  power  of Stark
          Offshore; and

     (B)  the interest in 14,636,856 shares arose from the holding registered in
          the name of Stark  International,  with  registered  office c/o Arthur
          Morris,  Christensen & Co., Century House, 31 Richmond Road,  Hamilton
          HM 08 Bermuda ("  Stark"),  whose  managing  general  partner is Stark
          Onshore  Management  LLC,  with  registered  office at 3600 South Lake
          Drive, St. Francis,  Wisconsin 53253, USA (" Stark Onshore"). Mr Stark
          controls at least one-third of the voting power of Stark Onshore.

3.
     (A)  Of the  43,910,569  shares held by Shepherd as at close of business on
          20 September 2004,  41,098,069 were ordinary shares and 2,812,500 were
          ordinary  shares   represented  by  an  interest  in  37,500  American
          Depositary Receipts ("ADRs ").

     (B)  Of the  14,636,856  shares held by Stark as at close of business on 20
          September  2004,  13,699,356  were  ordinary  shares and 937,500  were
          ordinary shares represented by an interest in 12,500 ADRs.

4.   The interests in the shares details at paragraphs 1-3 above do not arise by
     virtue of such an interest as is mentioned in s.208(5) Companies Act 1985.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


Date:  September 21, 2004                  BRITISH ENERGY PLC

                                           By:____John Searles____

                                           Name:  John Searles
                                           Title: Director - Investor Relations