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 7, 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: Sec. 198 Notice - Correction dated
              7 September 2004





7 September 2004


                             British Energy plc

The Company has received a correction from Morgan Stanley Securities Limited to
the notification made on 6 September 2004.  The correct notification is as
follows:

Notification for the purposes of sections 198-203 Companies Act 1985 - British
Energy 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 31 August 2004, Morgan Stanley
Securities Limited ("MSSL") acquired an interest in the shares that resulted in
their holding a total of 18,880,991, being approximately 3.04% of the issued
share capital of the Company.

The Company was also notified that on 1 September 2004 MSSL disposed of its
interest in some of the shares, with the result that MSSL, and the group
companies which are direct or indirect holding companies of MSSL, no longer hold
a notifiable interest in the shares in accordance with Section 198 of the
Companies Act 1985.

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 in 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:  September 7, 2004                   BRITISH ENERGY PLC

                                           By:____John Searles____

                                           Name:  John Searles
                                           Title: Director - Investor Relations