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 12 2003


                               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:  Proposed Disposal
              dated  September 12 2003



Exhibit No. 1


11 SEPTEMBER 2003


British Energy plc ("British Energy")


Proposed Disposal of Interest in AmerGen Energy Company, LLC

The Board of British Energy (the "Board") announces that British Energy and
certain of its subsidiaries have entered into an agreement to dispose of British
Energy's entire 50 per cent. interest in AmerGen Energy Company, LLC ("AmerGen")
to FPL Energy,  LLC ("FPL  Energy"),  which is a wholly-owned  subsidiary of FPL
Group (NYSE: FPL), for approximately US$277m (GBP174m).  The disposal of British
Energy's  interest  in  AmerGen  will  be  effected  through  the  sale  of  its
subsidiary,  British Energy U.S. Holdings Inc. ("BEUSH"), to an affiliate of FPL
Energy.


AmerGen is engaged in the ownership  and  operation of nuclear power  generation
plants in the United States of America.


The  proposed  transaction  is subject to a right of first  refusal (the "ROFR")
held by Exelon Generation Company,  LLC ("Exelon"),  British Energy's partner in
AmerGen.  Under the limited  liability  company  agreement (the "LLC Agreement")
relating to AmerGen,  Exelon has the right to purchase  British  Energy's 50 per
cent.  interest  in AmerGen on the same terms as those  offered by FPL Energy by
giving  notice of its  intention to do so within 30 days of receiving  notice of
FPL  Energy's  agreement  to  purchase  British  Energy's  interest  in AmerGen.
Exelon's ROFR will terminate on 11 October 2003. In certain circumstances, break
fees of up to US$8.295m  will be payable by British  Energy to FPL Energy in the
event that the  transaction  with FPL  Energy is not  completed  including  as a
result of Exelon exercising its ROFR to acquire AmerGen.


Under the LLC Agreement, in lieu of exercising its ROFR, Exelon has the right to
elect to participate in the sale of British Energy's  interest in AmerGen (the "
Tag-along  Right") on the same timetable as the ROFR. If Exelon were to exercise
its Tag-along Right, the consideration  offered by FPL Energy for a 50 per cent.
interest in AmerGen would be applied pro rata to the interests of British Energy
and Exelon, leaving each with a 25 per cent. interest in AmerGen.


Closing of the proposed transaction with FPL Energy is subject to approvals from
The  Secretary  of State  for  Trade  and  Industry  (the  "DTI"),  the  Nuclear
Regulatory Commission, the Federal Energy Regulatory Commission (the "FERC") and
the  Federal   Communications   Commission  and  requires  clearance  under  the
Hart-Scott-Rodino  Antitrust Improvements Act and the New Jersey Industrial Site
Recovery  Act.  In  addition,  the parties  will not be obliged to complete  the
transaction  if a material  adverse  effect (as  defined  in the  agreement)  on
AmerGen or BEUSH or certain  other  specified  adverse  effects  occur  prior to
closing.  Completion  of the  transaction  is also  subject to  approval  of the
disposal of British Energy's  interest in AmerGen by the shareholders of British
Energy, where required.

The Board  expects that it will require  approximately  six months to obtain the
necessary  regulatory approvals for a disposal of its interest in AmerGen to FPL
Energy.


If the sale to FPL Energy is completed,  British  Energy expects to receive cash
consideration  of  approximately  US$277m  (GBP174m),   subject  to  adjustments
relating to working capital levels,  unspent nuclear fuel, capital  expenditures
and low-level  waste disposal costs at the time of closing.  The proceeds of the
transaction are expected in the first instance to be used to repay the sums made
available  to British  Energy under the DTI credit  facility  entered into on 26
September  2002 and  subsequently  extended  (the  "Facility")  (if any) and the
remainder will be retained for working capital and collateral purposes.

As at 31 March 2003,  British  Energy had recorded its 50 per cent.  interest in
AmerGen  in its  accounts,  where  it is  classified  as an  "Interest  in joint
venture",   at  a  net  asset  value  of  GBP71m.   AmerGen's  loss  before  tax
(post-exceptionals) in the year ended 31 March 2003 was GBP5m. Taking account of
parent company  funding and working capital in AmerGen's US holding company that
is being  disposed of as part of the  transaction,  the total net asset value of
assets  as at 31 March  2003  subject  to the  transaction  was  GBP67m  with an
attributable  loss  before tax  (post-exceptionals)  for the year ended 31 March
2003 of GBP7m.


The sale of British Energy's interest in AmerGen is one of the conditions to the
proposed  restructuring agreed in principle with the creditors of British Energy
and the DTI on 14 February 2003.


The Board  believes  that such a  restructuring  of the  Group  offers  the best
available  opportunity  to  achieve  the long term  financial  viability  of the
British  Energy Group.  However,  the proposed  restructuring  requires  British
Energy to reach formal  agreement  with a large number of creditors with respect
to diverse  financial  interests,  as well as a  successful  disposal of British
Energy's interest in AmerGen.


If the transaction is not completed,  such  agreements with creditors  cannot be
reached,  the required approvals for the restructuring are not forthcoming,  the
assumptions  underlying  the  restructuring  proposal  are not  fulfilled or the
conditions to the Facility or  restructuring  are not satisfied or waived within
the  timescales  envisaged,  British  Energy may be unable to meet its financial
obligations  as they  fall due and  consequently  may  have to take  appropriate
insolvency   proceedings.   If  insolvency   proceedings   are  commenced,   the
distributions  to unsecured  creditors  may represent  only a small  fraction of
their  unsecured  liabilities  and there is highly  unlikely to be any return to
shareholders.  Even if the restructuring is completed,  the nature and extent of
the  return  (if any) for  existing  shareholders  will need to be agreed by the
creditors  whose  claims  are to be  exchanged  for new  shares and bonds in the
restructured group. In any event, the return (if any) for existing  shareholders
is  likely  to  represent  only a very  small  percentage  of the  equity of the
restructured group and a very significant dilution of their existing positions.


Notes to Editors:


The proposed sale of AmerGen was first  announced in September 2002 when British
Energy and Exelon,  partners in AmerGen,  announced their  intention  jointly to
sell their investment in AmerGen.  The disposal process did not attract suitable
offers and, together with Exelon, British Energy terminated this process earlier
this year. The  transaction  announced  today is the result of British  Energy's
plan, announced in March 2003, to realise the value of its 50 per cent. interest
in AmerGen independently from Exelon.


The  completion  of the  sale of  British  Energy's  interest  in  AmerGen  is a
condition to the restructuring proposals announced on 14 February 2003.


AmerGen is an "Exempt  Wholesale  Generator"  under the Public  Utility  Holding
Company Act of 1935, a "public  utility"  under the Federal  Power Act and has a
market-based rate wholesale power sales tariff on file with the FERC.

AmerGen was  established on 18 August 1997 by PECO Energy  Company  ("PECO") and
British  Energy to acquire and  operate  nuclear-powered  generating  plants and
other associated  assets in the United States.  PECO's interests in AmerGen were
transferred to Exelon in connection  with its merger with Unicom  Corporation in
2000.


AmerGen owns three nuclear power generation plants in the United States:

- Clinton  Power  Station,  a 1,017 Net  Average  Megawatts  Electrical  ("MWe")
Boiling Water Reactor, purchased from Illinois Power Company on 15 December 1999


- Three  Mile  Island  Nuclear  Station  Unit 1,  an 837 MWe  Pressurized  Water
Reactor,  purchased  from  FirstEnergy  Corp.  ("FirstEnergy",   which  includes
FirstEnergy Corp., its predecessors and subsidiaries, including GPU, Inc.) on 20
December 1999


- Oyster Creek Nuclear  Generating  Station,  a 627 MWe Boiling  Water  Reactor,
purchased from FirstEnergy on 8 August 2000


FPL Group,  with annual revenues of more than US$8 billion,  is nationally known
as  a  high-quality,  efficient  and  customer-driven  organization  focused  on
energy-related  products and services.  With a growing presence in 24 states, it
is widely recognized as one of the premier power companies in the United States.
Its  principal  subsidiary,  Florida Power & Light  Company,  serves more than 4
million  customer   accounts  in  Florida.   FPL  Energy,   LLC,  an  FPL  Group
energy-generating  subsidiary,  is a leader in producing  electricity from clean
and  renewable  fuels.  Additional  information  is available on the Internet at
www.fplgroup.com, www.fpl.com and www.fplenergy.com.

Contacts:

Paul Heward        +44 1355 262 201  (British Energy, Investor Relations)

Andrew Dowler      +44 20 7831 3113  (Financial Dynamics, Media)


                                   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 12 2003                   BRITISH ENERGY PLC

                                           By:____Paul Heward____

                                           Name:  Paul Heward
                                           Title: Director - Investor Relations