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


                                 August 04, 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 Notification dated 04 August 2004




Exhibit No 1.
                                                                   4 August 2004

                              British Energy plc

Notification for the purposes of sections 198-203 Companies Act 1985 - British
Energy plc (the "Company")

1.

The Company was notified by Brian J. Stark, of business address 3600 South Lake
Drive, St. Francis, Wisconsin 53253 USA, that as of 2 August 2004, he became
interested in a total of 30,821,175 shares of the Company.  Of these 30,821,175:

(A)         the interest in 23,115,881 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 7,705,294 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.

2.

(A)         Of the 23,115,881 shares held by Shepherd as at close of business on
2 August 2004, 20,303,381 were ordinary shares and 2,812,500 were ordinary
shares represented by an interest in 37,500 American Depositary Receipts
("ADRs").

(B)         Of the 7,705,294 shares held by Stark as at close of business on 2
August 2004, 6,767,794 were ordinary shares and 937,500 were ordinary shares
represented by an interest in 12,500 ADRs.

3.

On 3 August 2004 his interest increased (by way of further purchases) so that he
became interested in a total of 32,841,175 shares.  Of these 32,841,175:

(A)         the interest in 24,630,881 shares arose from the holding registered
in the name of Shepherd: and

(B)         the interest in 8,210,294,shares arose from the holding registered
in the name of Stark

4.

(A)         Of the 24,630,881 shares held by Shepherd as at close of business on
3 August 2004, 21,818,381 were ordinary shares and 2,812,500 were ordinary
shares represented by an interest in 37,500 ADRs.

(B)         Of the 8,210,294 shares held by Stark as at close of business on 3
August 2004, 7,272,794 were ordinary shares and 937,500 were ordinary shares
represented by an interest in 12,500 ADRs.

5.

The interests in the shares detailed at paragraphs 1-4 above does 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:  August 04, 2004                     BRITISH ENERGY PLC

                                           By:____Paul Heward____

                                           Name:  Paul Heward
                                           Title: Director - Investor Relations