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


                                October 26, 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 26 October 2004


26 October 2004


                               British Energy plc

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

Pursuant  to Section 198 of the  Companies  Act 1985,  the Company has  received
notification  that as at the close of business of 12 October 2004 UBS AG, acting
through its business group and legal entities detailed below, had an interest in
2,571,278  'A' shares of British  Energy Plc  representing  3.18 per cent of the
issued share capital of the Company.




UBS business group/legal entity     Breakdown of position held           (%)
                                                                       

UBS AG London Branch                      2,571,278                     3.18%

UBS AG - Total                            2,571,278                     3.18%



                                   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:  October 26, 2004                    BRITISH ENERGY PLC

                                           By:____John Searles____

                                           Name:  John Searles
                                           Title: Director - Investor Relations