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 24, 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 24 September, 2004


24 September 2004

                                British Energy plc

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

The Company has received notification from Brian J. Stark, of business address
3600 South Lake Drive, St. Francis, Wisconsin 53253 USA, hereby give you notice
as follows:

1. At close of business on 20 September 2004, Mr Stark was interested in a total
of 58,547,425 shares of the Company.

2. On 23 September 2004 his interest increased (by way of further purchases) so
that he became interested in a total of 66,104,043 shares of the Company.  Of
these 66,104,043:

(A)   the interest in 49,578,033 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").  He controls at least one-third of the voting power of
Stark Offshore; and

(B)   the interest in 16,526,010 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").  He controls at least one-third of the voting power of Stark
Onshore.

3.   (A) Of the 49,578,033 shares held by Shepherd as at close of business on 23
September 2004, 46,765,533 were ordinary shares and 2,812,500 were ordinary
shares represented by an interest in 37,500 American Depositary Receipts
("ADRs").

(B) Of the 16,526,010 shares held by Stark as at close of business on 23
September 2004, 15,588,510 were ordinary shares and 937,500 were ordinary shares
represented by an interest in 12,500 ADRs.

4.   The interests in the shares detailed 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 24, 2004                  BRITISH ENERGY PLC

                                           By:____John Searles____

                                           Name:  John Searles
                                           Title: Director - Investor Relations