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


                                  May 17, 2005


                            BRITISH ENERGY GROUP PLC
                               (Registrant's name)


                                  Systems House
                                   Alba Campus
                                   Livingston
                                    EH54 7EG
                    (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 17 May 2005





17 May 2005


                            British Energy Group plc


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

This notification relates to the ordinary shares of the Company (the "shares")
and is given in fulfilment of the obligations imposed under section 198
Companies Act 1985 (the "Act").

The Company has received notification that on 12 May 2005, Morgan Stanley
Securities Limited ("MSSL") acquired an interest in the shares that resulted in
their holding a total of 17,983,694 shares, being approximately 3.20% of the
issued share capital of the Company.

MSSL have transferred from time to time 11,063,432 shares to a third party on
terms which give them the right to require the return of an equivalent number of
shares.  Accordingly, their interest in 11,063,432 shares is pursuant to Section
208(5) of the Act.

MSSL is a member of the Morgan Stanley group of companies.  Those group
companies which are direct or indirect holding companies of MSSL are, under the
terms of section 203 of the Companies Act 1985, each interested by attribution
in any shares in which MSSL is interested.






                                   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: May 17, 2005                         BRITISH ENERGY GROUP PLC

                                           By:____John Searles____

                                           Name:  John Searles
                                           Title: Director - Investor Relations