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


                                December 17, 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:  Interim Results
              dated 17 December 2003


                               British Energy plc

17 December 2003

                            INTERIM RESULTS - Part 1

                        6 months ended 30 September 2003



CHAIRMAN'S STATEMENT

"The UK Government, creditors and shareholders have continued to support the
proposed restructuring plan to secure British Energy's future and long term
viability. For our part, we will continue to focus on delivering a successful
restructuring whilst rebuilding a company which can perform effectively in the
UK energy market."



Summary



- Substantially reduced loss before tax of GBP71m in the 6 month period ended 30
September  2003 compared with a loss of GBP337m in the  corresponding  period in
2002/3. The loss before  exceptionals and tax was GBP90m compared with a loss of
GBP124m in the corresponding period in 2002/3.

- No dividend  has been  declared  for the period.  The Board does not expect to
declare or propose any dividend  for any period  prior to the 2005/06  financial
year.

- UK nuclear output up 10% to 33.3 TWh. On the assumption that Heysham 1 returns
to service  during the first half of February 2004, it is expected that total UK
nuclear  output  will be around  65.5TWh.  This  compares  with total UK nuclear
output of 63.8TWh in the prior year.

- Operating costs on continuing  activities  before  exceptionals fell GBP40m in
the period mainly due to lower depreciation  following the fixed asset writedown
at 31 March 2003 Operating profit in the UK for the full year will be consistent
with the Board's expectations, notwithstanding the impact of recent developments
relating to the Sizewell B and Heysham 1 outages.

- Operating cash outflow, after capital expenditure,  was GBP26m,  compared with
an outflow of GBP71m in the corresponding  period in 2002/03,  an improvement of
GBP45m.  This  reflects a reduction  of GBP9m in UK capital  expenditure,  lower
payments  to British  Nuclear  Fuels plc (BNFL) and the  absence of  outflows to
Bruce Power following the sale of our interest in February 2003.

- The Company is fully  contracted  for the current  financial year with limited
price exposure,  and has fixed price sales contracts in place covering over half
of its planned output in 2004/05.  The Company will,  dependent upon electricity
market  prices,  also  benefit from  reduced  market risk via the price  hedging
arrangements under the revised contracts with BNFL.

- Restructuring events up to 30 September 2003:

     - Exchange of contracts  with BNFL  covering  front-end  and back-end  fuel
     contracts.  The Company also sold uranics stocks to BNFL for  approximately
     GBP58m.

     -  The  European  Commission   published  its  preliminary  views  and  the
     procedures for considering the State Aid application by the UK Government.

- Restructuring events since 30 September 2003:

     - The Group agreed the proposed  disposal of its 50% interest in AmerGen to
     Exelon for US$277m, subject to various adjustments and conditions including
     a break fee of US$8.295m payable to FPL Group Inc. (FPL). All US regulatory
     approvals  have now been  received  and the Group  expects to complete  the
     disposal shortly and, in any event no later than 31 March 2004.

     - The  Company  achieved  formal  agreements  on the terms of the  proposed
     restructuring   (the  Proposed   Restructuring)  and  the  continuation  of
     standstill  arrangements with certain creditors and the UK Government.  The
     creditors who have signed up to the Creditor  Restructuring  Agreement have
     agreed,  subject to a large  number of  important  conditions,  to exchange
     their  existing  claims  for the  issue of new  bonds  and bond  equivalent
     payments  under new  arrangements  for Eggborough and at least 97.5% of the
     new ordinary shares of the new parent company of the British Energy Group.

     -  Under  the  Proposed   Restructuring,   it  is  proposed  that  existing
     shareholders  will receive 2.5% of the equity of the new parent  company of
     the  British  Energy  Group plus  warrants to  subscribe  for 5% of the new
     equity,  subject to the proposed  scheme of arrangement  with  shareholders
     being approved and implemented as part of the Proposed Restructuring.

     - The UK Government  granted a temporary increase in its credit facility to
     the Company (the Credit  Facility)  to GBP275m  from the previous  level of
     GBP200m due to  pressures on the  Company's  liquidity  resulting  from the
     combined  effects of the increasing  levels of collateral  brought about by
     the increased  volatility in  electricity  prices and the recent outages at
     Sizewell B and Heysham 1. The additional  GBP75m will mature by the earlier
     of  receipt  by  British  Energy of the  AmerGen  disposal  proceeds  or 22
     February 2004.







Key financials are shown below:
                                                6 Months Ended         6 Months Ended           Year Ended
                                                  30 Sept 2003           30 Sept 2002        31 March 2003
                                                          GBPm                   GBPm                 GBPm
                                                                                              

Turnover                                                   677                    909                1,903
Operating Loss                                            (33)                  (157)              (3,802)
Loss Before Tax                                           (71)                  (337)              (4,292)
Net Operating Cashflow                                    (26)                   (71)                   54
Net Debt                                                 (621)                  (966)                (550)
Total Unit Costs (including                          1.92p/KWh              2.35p/kWh            2.16p/kWh
revalorisation)




The Proposed Restructuring, if implemented, will result in significant changes
to British Energy's financial position, including significant changes to the
Company's liabilities and costs. The financial information contained in this
document does not take into account those significant changes, which will not
take effect unless and until the Proposed Restructuring is implemented.



Further details regarding the Company's business and financial performance are
set out in the Management's Discussion and Analysis (MD&A) and Financial
Statements, which appear later in this document.  In addition the circular sent
to shareholders on 5 December 2003 regarding the proposed disposal of the
Company's 50% interest in AmerGen includes detailed information regarding the
Company and the Proposed Restructuring.



Restructuring

On 1 October 2003 British Energy entered into a formal agreement (the Creditor
Restructuring Agreement) with Teesside Power Limited, Total Gas & Power Limited,
Enron Capital & Trade Europe Finance LLC, The Royal Bank of Scotland plc (RBS),
BNFL and the ad hoc committee of British Energy's bondholders in relation to the
continuation of the standstill and ultimate recognition and compromise of their
claims and an agreement with the UK Government and others in relation to the
restructuring of the Group's nuclear liabilities.  By 31 October 2003
bondholders representing with RBS 88.8% of the combined amount owing to
bondholders and RBS, together with all the lenders and swap providers in the
Eggborough bank syndicate had signed up to the Creditor Restructuring Agreement.

The creditors who have signed up to the Creditor Restructuring Agreement have
agreed, subject to a large number of important conditions, to exchange their
claims for new bonds and bond equivalent payments under new arrangements for
Eggborough and at least 97.5% of the new ordinary shares in the restructured
group excluding the impact of any warrants issued.  In the case of the
bondholders and RBS the exchange will be made pursuant to a scheme of
arrangement with them (the Creditors' Scheme) which will require approval at
meetings of the bondholders and RBS and the sanction of the court.  RBS and the
bondholders who have signed up the Creditor Restructuring Agreement have agreed
to vote in favour of the Creditors' Scheme.

As part of the Proposed Restructuring, British Energy will seek to restructure
shareholders' interests either:

   i.          By a scheme of arrangement with shareholders (the Members'
Scheme) requiring shareholder approval and the sanction of the court; or

  ii.          If the shareholders do not vote in favour of the Members' Scheme
(or if it otherwise lapses) by the disposal by the Company of all of its
subsidiaries and other assets with shareholder approval (the Disposal Route).

However, if the shareholders do not vote in favour of the Members' Scheme and
shareholder approval in respect of the Disposal Route is not obtained, all of
the Company's shares will be de-listed (if not already de-listed to give effect
to the AmerGen disposal) in order for the Proposed Restructuring to be completed
without the requirement for a shareholder vote.

If the proposed Members' Scheme is implemented, shareholders will receive new
shares representing 2.5% of the issued share capital of the new parent company
of the Group immediately following implementation of the Proposed Restructuring.
In addition, existing shareholders will also receive warrants entitling them
to subscribe for new shares equal to 5% of the fully diluted share capital of
the new parent company of the Group immediately following completion of the
Proposed Restructuring, exercisable 5 years from the completion of the
restructuring. The subscription price for the warrants is GBP28.95m in aggregate
equivalent to an equity market capitalisation of the Group of GBP550m following
implementation of the Proposed Restructuring. In the event that the Members'
Scheme is not implemented, but the Disposal Route is approved, shareholders
would not receive any new shares but would receive the same  warrants entitling
them to subscribe for new shares equal to 5% of the equity.  In the event that
shareholders did not vote in favour of either the Members' Scheme or the
Disposal Route, they would receive nothing.

In the circular (the AmerGen Circular) sent to shareholders on 5 December 2003
concerning the proposed disposal of British Energy's interest in AmerGen (the
Disposal) the Board gave notice that in view of the importance of the Disposal
in the context of the Proposed Restructuring, if shareholders did not vote in
favour of the Disposal then in order to try and secure the financial stability
of the Company, the Board had decided that it would de-list the Company's shares
from the Official List of the UKLA and cease trading on the London Stock
Exchange in order to proceed with the Disposal without the approval of
shareholders (which upon de-listing will cease to be required). This decision
was taken reluctantly by the Board and reflects their belief that the Disposal
is a critical part of a successful restructuring of the Group.

Going Concern

The AmerGen Circular included a statement on and a description of working
capital of which the following is an extract:

"The Board is of the opinion that the working capital available to the Resultant
Group is not sufficient for the present requirements of the Resultant Group,
that is, for at least the next twelve months from the date of this document.

The Company is taking steps, with a view to improving this situation. The Board
has agreed with the Secretary of State a temporary increase in the  Government
Facility. The Company expects to receive the proceeds from the Disposal before
31 March 2004 which will significantly increase the Group's financial
flexibility. Over the longer term, the Board is exploring initiatives to reduce
the demand for trading collateral and to achieve sufficient liquid resources to
implement the Proposed Restructuring."

(Within the AmerGen Circular, "The Resultant Group" was defined as British
Energy and its subsidiary undertakings after closing; the "Government Facility"
was defined as the Credit Facility; and "the Disposal" was defined as the
proposed disposal by British Energy of its interest in AmerGen to Exelon).

This statement was prepared for the purposes of the Listing Rules of the UK
Listing Authority.  The standards which govern the preparation of financial
statements are different and require the Board to consider the going concern
requirements for the foreseeable future, a period greater than 12 months.
Notwithstanding this statement, the Board has decided to publish these Interim
Results on a going concern basis because the Company is seeking to implement the
Proposed Restructuring. Further details are set out in Note 1 - Basis of
Preparation - in the Notes to the Financial Statements.

Whilst we have made significant progress in taking forward the Proposed
Restructuring, it remains subject to a large number of significant uncertainties
and important conditions, including receipt by the Secretary of State of Trade
and Industry (Secretary of State) of a satisfactory notification from the
European Commission that in so far as the proposals involve the grant of State
Aid by the UK Government, such aid is compatible with the common market.  The
Secretary of State expects to receive the European Commission's decision by mid
2004.  Furthermore, the Secretary of State is entitled not to proceed with the
Proposed Restructuring if, in her opinion, the Group will not be viable in all
reasonably foreseeable conditions without access to additional financing (beyond
that which is committed and will continue to be available when required) and in
the meantime may require prepayment of the Credit Facility if she concludes that
the Proposed Restructuring cannot be completed in the manner or timescale
envisaged.

If the Disposal is not completed, or if there is a material downwards adjustment
to the consideration for the Disposal, or if the conditions to the Proposed
Restructuring are not fulfilled, or if the Company's cash generating initiatives
are not achieved, in each case within the timescales envisaged or required, or
if there is a material deterioration in the Group's cashflow performance or
outlook or if the  Credit Facility ceases to be available or if the standstill
or restructuring arrangements which the Group has entered into with certain
creditors are terminated, British Energy may be unable to meet its financial
obligations as they fall due and consequently the Group may have to take
appropriate insolvency proceedings, in which case the distributions to unsecured
creditors may represent only a small fraction of their unsecured liabilities and
there is unlikely to be any return to shareholders.



New York Stock Exchange (NYSE)

On 28 August 2003, the Company was notified by the NYSE that British Energy did
not at that time comply with the NYSE's continued listing standard relating to
minimum market capitalisation and shareholders' equity.  The Company is
currently in discussions with the NYSE with regard to its ability to meet the
continued listing standard. The Company currently does not, and may not in the
future, comply with the minimum listing standard of the NYSE, and may,
therefore, lose its listing on the NYSE.



Bruce Disposal

The disposal of British Energy's 82.4% interest in Bruce Power was completed on
14 February 2003 to a consortium of three parties for a consideration of C$677m
subject to various adjustments.  Under the master purchase agreement, a further
C$100m was payable to British Energy contingent upon the restart of two of the
four Bruce A units. C$50m would have been released had the first unit restarted
by 15 June 2003 and an additional C$50m would have been released to British
Energy had the second unit restarted by 1 August 2003. C$5m is deducted from the
C$50m payable in respect of each unit for its failure to restart by the
scheduled restart date and a further C$5m is deducted on the first day of each
successive calendar month that each reactor fails to re-start.

Bruce A Unit 4 was restarted in October 2003 and Unit 3 has now received
regulatory clearance to restart.  In view of the delays incurred the amounts
recoverable in respect of the restarts will be significantly lower than the
maximum of C$100m but the amounts and the timing of the payments still have to
be confirmed.

A further withholding of C$20m in respect of potential adjustments for pension
deficits was paid to British Energy in full on 28 April 2003.

The proceeds received in respect of the disposal of Bruce Power have been used
to repay or collateralise amounts drawn under the Credit Facility and to fund
working capital requirements.



Dividend Policy

The Board intends to distribute to shareholders as much of the Company's
available cash flow as prudently possible, consistent with the long-term
development of the business.  However, under the terms of the Proposed
Restructuring, there are certain restrictions on the Board's ability to pay
dividends, as follows:

-        British Energy is required to fund a cash reserve out of the Company's
post-debt service cash flow in order to support British Energy's collateral and
liquidity requirements post-restructuring.  The initial target amount for the
cash reserve is GBP490m plus the amount by which cash employed as collateral
exceeds GBP200m (the Target Amount).  It is expected that, when the Proposed
Restructuring is completed, the level of the cash reserves will be below the
Target Amount and therefore there will be no distributions to shareholders until
such time as the cash reserve is at the required level.  As a result of the
requirement to fund the cash reserves, the Board does not expect to pay a
dividend in respect of the financial year ending 31 March 2005.

-        The terms of the Nuclear Liabilities Agreements also require that once
the cash reserve is funded to the level to the Target Amount, British Energy
must make Cash Sweep Payments to the Nuclear Liabilities Fund (NLF).  The NLF
Cash Sweep Payment is initially defined as 65% of the movement in cash, cash
equivalents and other liquid assets during the year after adjusting for, among
other things, certain payments made to the NLF or dividends paid in the year.
The requirement to make the NLF Cash Sweep Payment will greatly reduce the
amount of cash that would otherwise be available for distribution to
shareholders.

-        The terms of the New Bonds contain certain covenants, including a
restriction that allows British Energy to pay a dividend only if no event of
default has occurred.



Board Changes & Staff

Earlier this year, I referred to the appointment of new Independent Directors.
Following the appointment of William Coley and Pascal Colombani to the Board on
1 June, Sir Robert Walmsley was appointed as an Independent Director on 1 August
2003.  Sir Robert was previously a nuclear expert in the Ministry of Defence in
the UK.  This combined experience of these three appointments reinforces the
Board's nuclear credentials as we focus on the performance and reliability of
the UK nuclear fleet.

Under the terms of our Proposed Restructuring, we will be looking to appoint two
further Independent Directors from candidates proposed by the Bondholders,
subject to review and nomination to the Board by the Nominations Committee.

The Board has decided to undertake an evaluation of its performance and
functioning, as recommended in the Higgs review, which will consider advice from
stakeholders.

On 8 December Keith Lough, our Finance Director, resigned from the Board of
British Energy but stays with us for the time being  to undertake special
projects. Keith joined British Energy as Finance Director in September 2001 and
has played a critical role in taking forward the Proposed Restructuring and I
would like to thank Keith for the tremendous work he has done in seeking to
secure British Energy's restructuring.   On 8  December 2003, the Company
appointed Martin Gatto to the Board as Interim Finance Director. Martin was
previously with Midlands Electricity and Somerfield plc. The Board has arranged
for there to be sufficient overlap in the transition period to ensure that the
responsibilities of the Finance Director are fulfilled at all times.

In these trying and difficult times, I would like to thank all our staff and to
congratulate them on continuing to conduct themselves in a highly professional
manner.



ADRIAN MONTAGUE







CHIEF EXECUTIVE'S REVIEW OF OPERATING PERFORMANCE

The Company continues to make significant progress towards achieving the
Proposed Restructuring, which, if it is fully approved, offers us an opportunity
to demonstrate that we can deliver improved performance.  The challenge for us
is to deliver enhanced and reliable output from our stations thereby enabling us
to build up our cash reserves and restore our profitability.  In this respect, I
am pleased to report an improvement in our overall operational performance as
well as a good start for our programmes to tackle the root causes of
under-performance.  However, the current unplanned outage at Heysham 1 and the
extended statutory outage at Sizewell B represent a clear indication of the
scale of the challenges facing us.

The key figures in the results were the loss before tax of GBP71m  compared with
a loss of GBP337m a year ago. There were exceptional credits amounting to GBP19m
in the period and details of these are covered elsewhere in the report.

The reduction in the Group's loss before tax reflected an increase in UK output
of 3.8 TWh and a net reduction of GBP40m in UK operating costs, with lower
depreciation (as a result of the substantial write downs of generation assets
last year) more than off setting increases in other operating costs.  The
Group's results include a contribution from our 50% share in AmerGen but there
was no contribution from Bruce Power following the sale of our interest in
February 2003.



UK Nuclear Generation

Total UK nuclear output increased to 33.3 TWh in the period compared with output
of 30.3 TWh a year ago.  There were strong performances from the Sizewell B and
Heysham 2 power stations.  During the period British Energy completed four
statutory maintenance outages, being the majority of such work in this financial
year.  Output in the first half of the previous year was adversely affected by
unplanned outages at Torness.

Since 30 September 2003, the Company's output has been adversely affected by the
extended statutory maintenance outage at Sizewell B and the on-going unplanned
outage at Heysham 1. This is covered in more detail in Current Trading and
Outlook, later in this Statement.

UK nuclear  costs per unit  excluding  revalorisation  fell 17% to  1.53p/kWh as
compared with  1.85p/kWh in the same period last year.  The operating unit costs
for the  reporting  period are  calculated by taking the total  operating  costs
before  exceptional items which were GBP686m and subtracting  GBP177m applicable
to non-nuclear  activities.  The resulting figure of GBP509m was then divided by
nuclear output of 33.3 TWh.

The principal reasons for the reduction in nuclear unit costs relate to the
higher output and the lower depreciation charge.  Fuel costs were GBP8m higher
primarily as a result of the increased output, offset by a price reduction.
When the revised BNFL arrangements, which underpin our cost improvement strategy
are fully implemented, nuclear front-end and back-end fuel costs will be
significantly reduced.  In addition these contracts simplify our AGR fuel
procurement activities.

At the time of the Preliminary Results in June 2003, we announced that we had
launched a number of programmes to tackle the root causes of under-performance.
Shortly afterwards we engaged an external team to assist us to scope the
problem and make recommendations on what needed to be done.   We have received
their initial suggestions and are reviewing these with them. These programmes
underline the importance that the Company is placing on achieving greater
reliability whilst consistently meeting its targets for cost efficient
operations and striving to achieve high operational standards.

The programmes are unlikely to have a material effect on the expected level of
capital and revenue expenditure i in the current financial year or the financial
year ending 31 March 2005. For the period thereafter, we are undertaking further
analysis of the impact of the programmes, focusing on costs and benefits, in
order to determine how far the levels of investment in the nuclear fleet will
require to be greater than expected in the business plan and in the Company's
announcement of 1 October 2003.   The Board believes that it is likely to
increase the level of investment that will be required compared to previous
expectations but these should deliver greater plant reliability.  The Company
will give a further up-date on the progress of these programmes at the time of
our next Preliminary Results.

UK Power & Energy Trading

Trading conditions were volatile through the period.  Forward base load prices
for the period from October 2002 to September 2003 have varied significantly,
ranging from 1.7p/kWh to over 2.1p/kWh.

The revised front-end and back-end fuel contracts that have been agreed with
BNFL provide an important partial hedge against market price movement on
approximately 50% of the Company's total nuclear output.  Further risk
mitigation has been (and will continue to be) delivered through the Group's
trading strategy.  The Board believes that short-term and medium-term risk
reduction will continue to be achieved through a trading mix that includes
medium-term direct sales to industrial and commercial customers as well as
contracting in the wholesale electricity markets.

Overall our UK achieved selling price for the period was 1.58p/kWh versus 1.73p/
kWh in the comparable period in 2002.  This decline reflects intense competition
in generation, which resulted in lower market prices.  These lower prices for
both wholesale and directly supplied power prevailed through the latter half of
2002 and the first half of 2003, when the bulk of the Company's generation for
delivery in the period was sold.  The achieved price compared with total UK
generation costs of 1.92p/kWh (including nuclear, Eggborough and corporate
overheads plus revalorisation) which was 18% lower than the same period last
year.  We managed our risk exposure by continuing to use diverse channels to
market and making best use of the flexibility of our Eggborough 2000MW coal
fired plant.  The average achieved selling price was calculated by taking the
total sales which were GBP560m, excluding energy supply costs of GBP103m and
miscellaneous income of GBP14m and dividing this by total output of 35.5 TWh.

Eggborough generated 2.2 TWh in the period.  Apart from providing a backup in
the event of nuclear unplanned outages, Eggborough also provides shape to our
nuclear base load output thereby enabling us to better meet our customers'
needs.  It is also used to meet short-term requirements in the balancing market.

In September 2002, in view of the Group's financial position, the Board decided
to revise the Group's wholesale contracting policy. Following this, the decision
was taken to fix a greater proportion of the Group's income to minimise risks
and reduce the Group's exposure to volatility in the wholesale price of
electricity. As a result, the Group is fully-contracted for the current
financial year with limited price exposure for the rest of the year and a
current forecast for average achieved price of 1.74p/KWh.  For future years, the
Group has less forward cover. For Summer 2004 and Winter 2004/2005, the Group
has in total contracted to sell approximately 96 per cent. of its planned output
and has fixed price sales contracts in respect of approximately 55 per cent. of
its output. The fixed price contracts for next year are at an average price of
1.81p/kWh . When taken together with the hedge provided by the revised BNFL
contracts, the exposure of the Group to the market price for electricity in the
financial year ending March 2005 is only 4 per cent of its total output or
approximately 3TWh.



We extended our Direct Sales Business to an annual volume of 29 TWh.  It now has
over 1200 customers and serves over 6500 sites.  This represents an increase of
30% in volume, 40% in customers and 30% in sites on an annualised basis.  The
Direct Supply Business continues to be highly rated for its customer service,
having won its 18th consecutive quarterly customer service award.

A revised date of April 2005 has been announced by Ofgem, the industry
regulator, for the implementation of the British Electricity Transmission and
Trading Arrangements (BETTA), an enlarged market covering England, Wales and
Scotland, subject to legislation which was announced in the Queen's Speech to
Parliament on 26 November 2003.

The Nuclear Energy Agreement (NEA) under which all of British Energy's
electricity generated from its two Scottish stations is sold will terminate on
the earlier of the introduction of BETTA or 1 April 2006, subject to European
Commission approval.



UK Operating Costs

Total  materials and services  costs for the whole  business  which comprise the
operating  expenses of all our power  stations and support  functions  excluding
fuel costs,  staff costs and  depreciation  increased by GBP28m when compared to
the prior period.  The increase  included a reduction of GBP111m in depreciation
charges due to the fixed asset  write-down  in 2002/03 and a reduction of GBP16m
related to  exceptional  items and an increase of GBP47m due to the expensing of
capital investment expenditure. Capital investment expenditure has been expensed
to the profit and loss  account in the  reporting  period,  following  the fixed
asset write down  carried out at 31 March 2003.  Staff costs have  increased  in
line with salary inflation.



North America

The  operating  profit for our 50% interest in AmerGen was GBP43m in the period,
compared  with  GBP45m in the same  period in 2002/03.  AmerGen  achieved  total
output of 10.6 TWh in the period representing an average load factor of 98%.

In September 2003, British Energy announced the proposed sale of its interest in
AmerGen to the FPL Group Inc (FPL) subject to Exelon's first right of refusal.
Exelon subsequently exercised this right and has agreed, subject to various
conditions, to acquire our 50% interest in AmerGen for US$277m subject to
various adjustments including a break fee payable to FPL for US$8.295m. All US
regulatory approvals relating to this sale have now been received.

There was no operating contribution from Bruce Power in the period following the
sale of our interest in February 2003.



Current Trading & Outlook

For the period from 1 April 2003 to 30 November 2003, the total output of the
Group (excluding AmerGen) amounted to 46.7 TWh, of which 42.8 TWh was derived
from its nuclear fleet and 3.9 TWh from the Eggborough coal-fired station.
However, British Energy's trading strategy has limited the benefit from price
rises in the current year.

As announced on 23 and 29 October 2003, during a routine maintenance outage at
Sizewell B, the Company discovered certain anomalies in 2 welds that required
further investigation.  This investigation was completed and Sizewell B returned
to service on 15 November 2003.

On 16 December the Company announced that having now reviewed the results of the
inspections of the sea water cooling pipework at Heysham 1, it has decided that
it is necessary to extend the current outage in order to replace further
pipework. In light of this, the Company has revised its annual UK nuclear output
forecast for the year ending 31 March 2004 downwards from 67TWh to around
65.5TWh on the assumption that Heysham 1 returns to service in the first half of
February 2004.

Based on the above assumption it is estimated that the lost output arising from
the continuing outage at Heysham 1, together with the recent extended statutory
outage at Sizewell B, will be approximately 3.2 TWh with an aggregate gross cash
cost of approximately GBP95m.  This compares with the previously announced
estimates of 1.7 TWh and GBP50m respectively.

The Board believes that operating profit in the UK for the full year will be
consistent with its expectations, notwithstanding the impact of developments
relating to the Sizewell B and Heysham 1 outages discussed above and the impact
of the increased level of prices in the UK generation market. However, as a
result of the non-cash impact of revised revalorisation assumptions, profit
before tax for the full year is likely to come in below the Board's previous
expectations.

Based on the performance in the year to date in controlling operating costs and
in achieving fuel efficiencies, the Company remains confident that it will
achieve the margin improvements of GBP25m over its business plan in the current
financial year. The improvement is reflected in the lower total costs of 1.92p/
kWh in the period, compared with 2.35p/kWh in the corresponding period in 2002
and 2.17p/kWh in the year ended 31 March 2003.

In the light of  increased  pressure on the Group's  liquid  resources  and as a
result of a combination of the recent unplanned outages and the increased levels
of  collateral  and  costs  of  such  outages  brought  about  by the  increased
volatility  of  electricity  prices,  the Company has taken steps with a view to
improving the working capital  position of the Group.  The Board has agreed with
the Secretary of State a temporary  increase in the Credit Facility from GBP200m
to GBP275m.  The additional  GBP75m will mature by the earlier of the receipt by
British Energy of the proceeds of the AmerGen  Disposal or 22 February 2004. The
Company  expects to receive the proceeds  from the  disposal of AmerGen  shortly
and, in any event, no later than 31 March 2004 which will significantly increase
the Group's financial flexibility.  Over the longer term, the Board is exploring
initiatives  to  reduce  the  demand  for  trading  collateral  and  to  achieve
sufficient liquid resources to implement the Proposed Restructuring.

As at 12 December  2003,  excluding  amounts  reserved  for  interest  payments,
British Energy had cash, including amounts placed as collateral,  of GBP379m. Of
this,  GBP359m was deposited as collateral in support of the Group's trading and
operational  requirements.  As at 12 December  2003,  the Group had  drawings of
GBP94m under the Credit Facility,  leaving  availability  under such facility of
GBP106m  (not taking into  account the  temporary  increase of GBP75m  described
above).



Future Reporting Requirements

In the lead up to restructuring becoming effective, British Energy is moving to
quarterly reporting of results as required under the terms of the restructuring
agreements. By the June 2004 quarter, the published results will include full US
GAAP financial statements and disclosures as if the Company were a US domestic
registrant.





MIKE ALEXANDER









Further Information

Contacts

Investor Relations                                      Media Enquires
Paul Heward                                             Andrew Dowler
Telephone 01355 262201                                  Telephone 0207 831 3113



There will be an investor/analyst conference call for investors at 15:30hrs UK
time. Dial in: 0845 1462004; International dial in: +441452 556 640.



Find this News Release on our web site: www.british-energy.com

Information Regarding Forward-Looking Statements

This report contains certain "forward-looking" statements as defined in Section
21E of the United States Securities Exchange Act 1934.  Such forward-looking
statements include, among others, statements concerning the anticipated
development of the UK electricity industry, the future development of regulation
of the UK electricity industry, the effect of these developments on our
business, financial condition or results of operations, our Proposed
restructuring, our expectations as to the growth of our business, our
expectations with regard to our future investments in energy related projects in
the UK and internationally and other statements of expectation, belief, future
plans and strategies and other matters that are not historical facts concerning
our business operations, financial condition and results of operations.  These
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which are in some cases beyond our control and may cause our
actual results or performance to differ materially from those expressed or
implied by such forward-looking statements.  Due to the uncertainties and risks
associated with these forward-looking statements, which speak only as of the
date hereof, we are claiming the benefit of the safe harbour provision referred
to above.


                               BRITISH ENERGY PLC



                                17 December 2003



            INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2003



                                     Part 2





ITEM 2            MANAGEMENT'S DISCUSSION AND ANALYSIS - FINANCIAL CONDITION AND
RESULTS OF OPERATIONS



Certain statements in this section are "forward-looking" statements (as defined
in Section 21E of the US Securities Exchange Act of 1934).



Such forward-looking statements include, amongst others:



-       Statements concerning our proposed restructuring and the effect of our
proposed restructuring on our business and financial condition or results of
operations.



-       Other matters that are not historical facts concerning our business
operations, financial condition and results of operations.



These forward-looking statements involve known and unknown risks, uncertainties
and other factors which are in some cases beyond our control and may cause our
actual results or performance to differ materially from those expressed or
implied by such forward-looking statements.  Due to the uncertainties and risks
associated with these forward-looking statements, which speak only as the date
hereof, we are claiming the benefit of the safe harbour provision referred to
above.



In the following discussion the "reporting period" refers to the six months
ended 30 September 2003 and the "prior period" refers to the six months ended 30
September 2002 unless otherwise stated.  The following discussion and analysis
should be read in conjunction with the financial statements for the six months
ended 30 September 2003 and the notes thereto which are included in this report.
British Energy's financial statements have been prepared in accordance with UK
GAAP.  A description of the differences between UK GAAP and US GAAP as they
relate to the Group are set out in Note 37 of our Form 20-F for the year ended
31 March 2003.



INTRODUCTION



British Energy has interests in eight nuclear power stations and one coal-fired
plant in the United Kingdom.  In addition the Group has interests through its
joint venture, AmerGen, in three reactors in the USA but has recently announced
the proposed sale of its interests in AmerGen to Exelon.



RESTRUCTURING UPDATE



On 5 September 2002 the Board of Directors announced that it had initiated
discussions with the UK Government with a view to seeking immediate financial
support to implement a longer-term financial restructuring.  The Board of
Directors decided to initiate discussions with the UK Government based on
several factors including:



-           Its review of the revised forecast for UK nuclear generation for the
fiscal year ending 31 March 2003 (which indicated output of approximately 63 TWh
as compared with the original target output of 67.5 TWh, due to unplanned
outages particularly those at Torness and Dungeness B nuclear power stations).



-         The failure of negotiations with British Nuclear Fuels plc, or BNFL,
to reach agreement on the terms of revisions to our fuel contracts, and



-         Its review of the long-term prospects of the British Energy Group of
Companies (the 'Group').



On 9 September  2002 the UK  Government  granted the Group a Credit  Facility in
order  to  provide  working  capital  and  cash  collateral  in  support  of its
electricity  trading  contracts  in the United  Kingdom and certain  procurement
contracts.  The Credit Facility  currently  provides for an aggregate  principal
amount of GBP200m  (which was  temporarily  increased  to GBP275m on 27 November
2003) and will mature, subject to certain conditions, at the earlier of the date
required by the EC, completion of our proposed  restructuring,  and 30 September
2004.



On 1 October 2003, British Energy (the 'Company') announced that it had agreed
the terms of a proposed restructuring (the 'Proposed Restructuring') of the
Group with certain of its creditors and the Secretary of State for Trade and
Industry (the 'Secretary of State').  The Proposed Restructuring is based on the
heads of terms signed on 14 February 2003.  The Company entered into an
agreement dated 1 October 2003 (as amended by a side letter entered into on 31
October 2003) with certain of its creditors (the 'Creditor Restructuring
Agreement') setting out the terms of the Proposed Restructuring.  Completion of
the Proposed Restructuring is subject, amongst other things, to receipt by the
Secretary of State of a satisfactory notification from the European Commission
that insofar as the proposals involve the grant of State Aid by the UK
Government, such aid is compatible with the common market.  The Secretary of
State expects to receive this notification by mid 2004.



The restructuring proposals set out in the Creditor Restructuring Agreement were
subject to certain creditor approvals being obtained by 31 October 2003.  On 31
October 2003, the Company confirmed that the initial requirements relating to
creditor approvals and sign-ups to the Proposed Restructuring had been
satisfied.



RECENT DEVELOPMENTS



Credit Facility Agreement



On 27 November 2003 British Energy announced that it had agreed a temporary
increase in the amount of the Credit Facility to GBP275m with the Secretary of
State.  The increase was required because of pressures on the Company's
liquidity resulting from the combined effects of requirements for increased
collateral brought about by greater volatility in electricity prices and the
recent outages of Sizewell B and Heysham 1.  The temporary increase in the
facility of GBP75m will be available until the earlier of the receipt of the
proceeds from the disposal of its 50% interest in AmerGen Energy Company LLC
('AmerGen') and 22 February 2004.



New York Stock Exchange Listing



On 28 August 2003 the Board of British Energy was notified by the New York Stock
Exchange ('NYSE') that British Energy did not at that time comply with the
NYSE's continued listing standard relating to the minimum market capitalisation
and shareholders' equity.  The Company is currently in discussions with the NYSE
with respect to its ability to meet the continuing listing standard.  The
Company currently does not, and may not in the future, comply with the minimum
listing standard of the NYSE, and may, therefore, lose its listing on the NYSE.



Sale of AmerGen



In the United States the Group has a 50% interest in AmerGen.  Exelon Generation
Company LLC ('Exelon'), owns the remaining 50% interest.  AmerGen owns and
operates three nuclear power stations in Clinton, Illinois; Oyster Creek, New
Jersey and Three Mile Island, Pennsylvania respectively with a combined capacity
of 2,500 MW.  The operation of these nuclear power stations is integrated with
the operation of Exelon's nuclear power stations.



The AmerGen stations have fixed arrangements in place with the former owners of
the stations or with Exelon for the sale of all their output at agreed prices
over the currently licensed lives of the stations.  As a result the Group has
limited exposure to electricity market price movements in the United States.



On 11  September  2003,  the  Company  announced  that it,  and  certain  of its
subsidiaries,  had entered  into a  conditional  agreement to dispose of British
Energy's 50% interest in AmerGen to the FPL Group Inc. ('FPL') for approximately
US$277m  (GBP167m,  translated  at  $1.66  :  GBP1  based  on  the  hedge  rates
applicable),  subject to various  potential  adjustments  including  a break fee
payable to FPL for US$8.295m.



This announcement highlighted the fact that the Group's joint venture partner in
AmerGen, Exelon, had a right of first refusal ('ROFR') arising under the limited
liability company agreement related to AmerGen to purchase the Group's interest
in AmerGen on the same terms as those offered by FPL.



On 3 October 2003, Exelon exercised its ROFR indicating that it would purchase
the Company's interest in AmerGen (to be effected through a sale of the entire
share capital of the Company's subsidiary, British Energy US Holdings Inc. ('
BEUSH')) on the same terms and conditions and at the same price as offered by
FPL (the 'Disposal').  The terms and conditions of the Disposal were formally
recorded in a legally binding agreement entered into on 10 October 2003.



The Group expects to complete the Disposal shortly and in any event not later
than 31 March 2004, subject to approval by an Extraordinary General Meeting of
shareholders which is scheduled to take place on 22 December 2003.



The value of net assets of BEUSH which are the subject of the transaction was
recorded as GBP119m (translated at the balance sheet exchange rate of US$1.66 :
GBP1.00).



Bruce A restart



On 14 February 2003 the Company announced that it had completed the disposal of
its 82.4% interest in Bruce Power in Canada to a consortium of three parties.
In addition to the consideration payable by the consortium under the master
purchase agreement, a further C$100m was payable to British Energy contingent
upon the restart of two of the Bruce A units.  C$50m would have been released to
British Energy had the first unit restarted by 15 June 2003 and an additional
C$50m would have been released to British Energy had the second unit restarted
by 1 August 2003.  C$5m is deducted from the C$50m payable in respect of each
unit for its failure to restart by the scheduled restart date or by the first
day of each successive calendar month following the scheduled restart date.  At
30 September 2003 these units had not restarted therefore the Group has not
recognised any amount in respect of contingent consideration on its Balance
Sheet at 30 September 2003 because of uncertainties regarding their realisation,
and there is likely to be a significant reduction in the aggregate amount
payable to British Energy.



Recent Outages



On 23 October 2003, the Company announced that an unusual indication from
ultrasonic inspection of two welds in the turbine steam system led to a
requirement for further investigation at its Sizewell B nuclear power station.
The indication was discovered during a statutory maintenance outage, which takes
place at the plant at 18 monthly intervals.



On 29 October 2003, the Company announced that the additional tests at Sizewell
B had revealed no significant surface defects and that work continued to
characterise and assess the significance of the unusual indication found from
the original examination.  At that time, the Company also announced that, based
on these findings, it estimated that it was unlikely that invasive repairs would
be required.  The plant returned to service on 15 November 2003.



On 28 October 2003 both reactors at Heysham 1 were safely shut down following a
failure of a seawater cooling pipe within the turbine hall.  Both reactors were
shut down manually and the site's safety systems operated normally.  There was
no radiological release.  The leak in the pipe was stopped and the water was
removed from the turbine hall.   On 16 December the Company announced that the
inspections of the sea-water cooling pipes at Heysham 1 have now been completed
and having reviewed the inspection results received, British Energy has decided
it is necessary to extend the current outage in order to replace further
pipework.  As a consequence it is now expected that the outage on the two units
will continue until the first half of February 2004.





FACTORS AFFECTING RESULTS OF OPERATIONS



Group Performance



The loss on ordinary activities before taxation was GBP71m for the reporting
period.  The operating loss for the period was GBP33m, an improvement of GBP162m
when compared to the prior period (after exclusion of the results of Bruce Power
which was sold in February 2003).  The change in operating result of continuing
activities can be summarised as follows.




                                                                                         Changes in operating
                                                                                                result

                                                                                         Increase/(decrease)
                                                                                            GBPm           GBPm
                                                                                                      

Increased turnover pre-exceptionals                                                           15
Exceptional turnover credit in prior period                                                 (41)
Total reduction in turnover                                                                                (26)

Reduced exceptional charges                                                                  148
Reduced depreciation                                                                         111
Charge for write-off of capital investment expenditure                                      (47)
Energy supply cost changes                                                                   (9)
Fuel cost increases due to higher output                                                    (26)
Cost savings                                                                                  11

Total reduction in operating costs                                                                          188
Improvement in operating loss position                                                                      162




UK Operations



The results of UK operations are principally affected by changes in plant
output, achieved electricity prices, operating costs, and revalorisation
charges.  Each of these factors is discussed below.



Plant Output



Nuclear output for the reporting period was 33.3 TWh (representing a 79% load
factor), an increase of 3.0 TWh over the prior period.



Nuclear output is subject to a number of factors, principally the frequency and
duration of outages (being any period when the station is not generating).  The
nuclear regulatory regime in the United Kingdom requires each nuclear power
station to be shut down periodically for maintenance and inspection as a
condition of that power station's nuclear site licence, which is referred to as
a statutory outage.  Certain nuclear power stations must be shut down to allow
for refuelling, which is referred to as a refuelling outage.  In addition,
nuclear power stations must be shut down for planned maintenance, inspection and
testing or to address an unplanned technical malfunction or engineering failure,
all of which we refer to as other outages.



Eggborough, which is the Group's sole coal burning station, produced 2.2 TWh
during the reporting period, an increase of 0.8 TWh compared to the prior
period.



Achieved Electricity Prices



The achieved selling price (which is calculated by dividing total wholesale and
direct energy sales net of energy supply costs by total output during the
period) for the reporting period was 1.58p/kWh, as compared with our achieved
selling price for the prior period which was 1.73p/kWh, a decrease of 9%.  This
decline reflects intense competition in generation and lower market prices for
both wholesale and directly supplied power.  These lower prices prevailed
throughout 2002 and the first half of 2003 when the bulk of the power for
delivery in the period to 30 September 2003 was sold.  Significant protection
against further falls in wholesale price has been achieved by implementing a new
trading strategy.  This strategy also reduces the potential benefit from rises
in wholesale price in the current year and, to a lesser extent, in the following
two years.



Operating Costs



A high proportion of the Company's operating costs are fixed in nature and are
discussed more fully later in this report.



Revalorisation



Revalorisation, which is included in financing charges, results from the
combined effect of inflation for the period, and unwinding of the discount rate
required to restate the Group's nuclear liabilities at the money values
applicable at the balance sheet date.



Exceptional Operating and Financing Items



During both the reporting period and the prior period our financial results have
been affected by a number of exceptional operating and financing items.  The
table below summarises the impact of exceptional operating and financing items
(before tax) under UK GAAP for both the reporting period and the prior period.




                                                                               Six months ended 30 September
                                                                                      2003              2002
                                                                                      GBPm              GBPm
                                                                                                   

Restructuring costs                                                                     37                 7
Onerous trading contracts                                                                -                46
Write down of investment in own shares                                                   -                98
Release of Nuclear Energy Agreement provisions                                           -              (41)
UK decommissioning fund (credit)/write down                                           (39)               103
US decommissioning fund credit                                                        (14)                 -
Interest rate swaps provision credit                                                   (3)                 -
Total                                                                                 (19)               213




During the reporting period we recognised net exceptional operating and
financing income of GBP19m as compared with net exceptional operating and
financing charges of GBP213m during the prior period.  Exceptional operating and
financing items comprised:



2003

- An exceptional charge of GBP37m related to advisory and other costs associated
with the Company's Proposed Restructuring.



- At 30  September  2003 the  market  value of the UK  decommissioning  fund had
increased to GBP398m,  thereby  necessitating an exceptional credit of GBP39m in
the reporting  period to reverse  previously  written-down  amounts.  The market
value remains below the amount which would have been calculated by revalorising,
on an actuarial basis, the total amounts which have been invested in the fund.



- At 30  September  2003 the market  value of British  Energy's  share of the US
decommissioning  fund  had  increased  to  GBP321m,   thereby  necessitating  an
exceptional  credit of GBP14m in the period to restate the Group's investment in
AmerGen by reversing previously  written-down  revalorisation.  The market value
remains below the amount which would have been  calculated by  revalorising  the
value of the fund on an actuarial basis.



- At 30 September 2003 the value of the interest rate swaps provision was marked
to market with the resultant change in fair value during the period producing an
exceptional credit of GBP3m.



2002

- An exceptional  charge of GBP7m related to advisory and other costs associated
with the Company's Proposed Restructuring.



- An exceptional  charge of GBP46m resulted from provision for three significant
out-of-the-money  trading  contracts due to lower than  anticipated  electricity
prices in the United Kingdom.  These contracts had previously been accounted for
as a hedge  against our  electricity  output in the UK.  However  following  the
introduction  of NETA  these  contracts  were no longer  accounted  for as hedge
contracts  and,  because they were  out-of-the-money,  they were provided for as
onerous contracts under UK GAAP.



- The exceptional charge of GBP98m related to the write down in value of British
Energy shares held in trust to honour employee share options.



- An  exceptional  credit  of  GBP41m  related  to the  revised  terms  for  the
electricity  supply  agreement  with  Scottish  Power and  Scottish and Southern
Energy.  Under the terms of the  agreement,  the  Company  was in a position  to
release a balance of GBP41m in respect of cash previously received.



- The exceptional  charge of GBP103m related to a write down in the market value
of our UK decommissioning  fund. The market value of our UK decommissioning fund
declined  relative  to its book value as a result of the world  wide  decline in
prices of equity securities.





RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003, COMPARED WITH
THE SIX MONTHS ENDED 30 SEPTEMBER 2002.



The discussion below will focus on continuing activities and compare the six
months ended 30 September 2003 (the 'reporting period') with the six months
ended 30 September 2002 (the 'prior period') unless otherwise stated.



Turnover



Turnover for  continuing  activities  in the  reporting  period was  GBP677m,  a
decrease  of  GBP26m  compared  with the prior  period.  The  principal  factors
resulting in this decrease are set forth below.




                                                                                      Changes in turnover
                                                                                      Increase/(decrease)
                                                                                                     GBPm
                                                                                                   

Change in UK turnover
                Due to increased output                                                                77
                Due to lower electricity prices                                                      (55)
                Decrease in miscellaneous income                                                      (7)
               Change in turnover prior to exceptional items                                           15
                Due to exceptional NEA income credit in prior period                                 (41)
Decrease in turnover from continuing activities                                                      (26)




Output in the United Kingdom was 35.5 TWh in the reporting period as compared
with 31.7 TWh in the prior period.  Nuclear generation output was 33.3 TWh in
the reporting period compared with 30.3 TWh in the prior period.  Eggborough
output increased from 1.4 TWh to 2.2 TWh.



Increased output from our UK power stations resulted in increased turnover of
GBP77m.  Our achieved selling price during the reporting period was 1.58p/kWh, a
decrease of 9% as compared with the prior period, resulting in a decrease in UK
turnover of GBP55m.



In the prior  period the Company  agreed  revised  terms for the Nuclear  Energy
Agreement  ('NEA') with  Scottish  Power and Scottish and Southern  Energy which
resulted in the release of GBP41m in respect of cash  previously  received,  and
was  reported as an  exceptional  credit  within UK turnover  (see  "Exceptional
Operating and Financing Items").





Operating Costs


                                                                          Six months ended 30 September
                                                                          2003           2002     (Increase)/
                                                                                                     decrease
Continuing Activities excluding exceptional costs                         GBPm           GBPm            GBPm
                                                                                                 
Fuel                                                                       184            167            (17)
Material and services                                                      262            218            (44)
Staff costs                                                                112            111             (1)
Depreciation                                                                25            136             111
Energy supply costs                                                        103             94             (9)
                                                                           686            726              40
Continuing Activities - exceptional items
Materials and services                                                      37             53              16
Amounts (credited)/written off non-operational assets                     (13)            119             132
                                                                            24            172             148
Continuing Activities - total costs
Fuel                                                                       184            167            (17)
Materials and services                                                     299            271            (28)
Staff costs                                                                112            111             (1)
Depreciation                                                                25            136             111
Energy supply costs                                                        103             94             (9)
Amounts (credited)/written off non-operational assets                     (13)            119             132
                                                                           710            898             188
Discontinued Activities - total costs                                        -            168             168
Total operating costs                                                      710          1,066             356




Total  operating  costs were  GBP710m in the  reporting  period,  a decrease  of
GBP356m  compared with GBP1,066m in the prior period.  The total operating costs
of continuing activities excluding exceptional items in the reporting period was
GBP686m. This was GBP40m less than the GBP726m incurred in the prior period.



Fuel



Fuel costs  increased by GBP17m in the  reporting  period  compared to the prior
period.  Increased  output  from our UK power  stations  resulted  in  GBP26m of
additional  costs  partly  offset  by  efficiency  savings  of GBP8m  and  price
reductions of GBP1m. On 16 May 2003, the Company announced that it had exchanged
contracts  with  British  Nuclear  Fuels plc, or BNFL,  covering  front-end  and
back-end fuel services. The front-end contracts became effective on 1 April 2003
and payments to BNFL are being made as if the new back-end  contracts had become
effective on 1 April 2003.  The financial  statements  for the reporting  period
have been drawn up on the basis of the  previous  BNFL  contracts  in respect of
back end fuel costs,  pending  satisfaction of the restructuring  conditions set
out in the  new  contracts  thereby  creating  a  contingent  asset  of  GBP220m
(inclusive  of  principal  amounts  accrued  at 31  March  2003)  which  will be
recognised upon completion of the proposed restructuring.



Materials and Services



Materials and services costs comprise the operating expenses of our power
stations and support functions excluding fuel costs, staff costs and
depreciation.



The costs during the reporting  period  increased by GBP28m when compared to the
prior period. The increase included a reduction of GBP16m related to exceptional
items and an  increase  of GBP47m due to the  expensing  of  capital  investment
expenditure.  Capital investment expenditure has been expensed to the profit and
loss  account in the  reporting  period,  following  the fixed  asset write down
carried out at 31 March 2003.



Staff Costs



Staff costs during the  reporting  period  increased by GBP1m  compared with the
prior period. The increase was primarily due to salary inflation.



Depreciation



Depreciation  charges were GBP25m  during the  reporting  period  compared  with
GBP136m in the prior  period.  This decrease of GBP111m was primarily due to the
fixed  asset  write  down of  GBP3,738m  at 31 March 2003 (see Note 7(ii) of the
accompanying Interim Financial Statements).



Energy Supply Costs



Energy supply costs in the UK were GBP103m in the reporting period compared with
GBP94m in the prior period.  The increase primarily reflects the 35% increase of
direct supply volume.



Non-operational Assets



There was an exceptional credit against  non-operational assets in the reporting
period of GBP13m  compared  with an  exceptional  cost of  GBP119m  in the prior
period.  The  credit of GBP13m in the  reporting  period  relates to the mark to
market value  adjustment of the UK  decommissioning  fund and reverses the write
down made in the year  ended 31 March  2003.  The  GBP119m  in the prior  period
consisted  of  exceptional  charges  relating  to the write  down of own  shares
investments and the write down of the UK decommissioning fund receivable.



Discontinued Activities



British Energy sold its operations in Bruce Power in February 2003.  The
operating costs in the prior period were GBP168m.





Operating Loss


                                                                                    30 September
                                                                                                    Decrease /
                                                                                                    (Increase)
                                                                            2003          2002       to losses
                                                                            GBPm          GBPm            GBPm
                                                                                                  
Continuing activities                                                        (9)          (64)              55
Discontinued activities                                                        -            38            (38)
Exceptional items                                                           (24)         (131)             107
Total                                                                       (33)         (157)             124




The operating loss in the reporting period was GBP33m compared with an operating
loss of GBP157m in the prior period.



Excluding exceptional items and discontinued  activities,  the operating loss in
the reporting period was GBP9m, compared with an operating loss of GBP64m in the
prior  period.  The  decrease  in the loss was  primarily  due to  increases  in
turnover of GBP15m and the  decreased  depreciation  charges of GBP111m,  partly
offset by the  GBP47m of capital  investment  expenditure  charged to  operating
costs.



Share of Operating Profit of Joint Ventures



Our share of the operating profit of AmerGen decreased by GBP2m to GBP43m in the
reporting period.  The output from the three AmerGen power stations totalled
10.6 TWh in the reporting period, an increase of 0.9 TWh compared with 9.7 TWh
in the prior period.  As indicated above we are in the process of selling our
interest in AmerGen.





Financing Charges


                                                                                    30 September
                                                                                                   (Increase)/
                                                                                                      decrease
                                                                            2003          2002
                                                                            GBPm          GBPm            GBPm
                                                                                                  

Revalorisation of nuclear liabilities                                        116           120               4
Other revalorisation                                                        (17)           (6)              11
Revalorisation                                                                99           114              15
Net interest expense                                                          25            29               4
Financing charges before exceptional items                                   124           143              19
Exceptional revalorisation and interest                                     (43)            82             125
Total financing charges                                                       81           225             144




Financing charges in the reporting period decreased by GBP144m compared with the
prior period.



The  revalorisation  charge  excluding  exceptional  items  was  GBP99m  in  the
reporting  period  compared  with  GBP114m in the prior  year.  The  decrease in
revalorisation charges primarily reflects no revalorisation charge being made in
the  reporting  period in respect of amounts  owing to  Teesside  Power  Limited
('TPL'),  Total Gas & Power  Limited  ('Total') and Enron Capital & Trade Europe
Finance LLC ('Enron')  due to the  Standstill  Agreement  reached as part of the
Proposed  Restructuring,  removing the need for revalorisation in respect of the
three contracts in question.  The weighted average UK inflation rate was 1.5% in
the reporting period compared with 1.7% in the prior period and also resulted in
lower revalorisation in the reporting period.



In the reporting period there were  exceptional  credits of GBP40m in respect of
revaluation of our  decommissioning  fund  receivables and GBP3m in respect of a
provision for interest  rate swaps.  The prior period  exceptional  charge was a
write  down  of  GBP82m  in  respect  of the  decommissioning  fund  receivable.
Excluding these  exceptional  items,  financing  charges  decreased by GBP19m to
GBP124m in the reporting period.



Taxation



The tax charge for the reporting  period was GBP8m. The tax charge comprises the
overseas tax charge of GBP8m in respect of the Group's  liability  for its share
of AmerGen's  taxable  profits.  There was no UK tax charge for either period as
tax losses were incurred.



The tax charge for the prior  period,  excluding  tax  relating  to  exceptional
items,  was  GBP78m.  This  comprised  a UK  deferred  tax charge of GBP60m,  an
overseas  (Canadian) tax charge of GBP11m, an overseas  (Canadian)  deferred tax
credit of GBP4m and an GBP11m charge in respect of AmerGen.



Loss on Ordinary Activities



As a  result  of the  factors  discussed  above,  there  was a loss on  ordinary
activities  after  taxation for the reporting  period of GBP79m  compared with a
loss of GBP403m in the prior period.



Minority Interests



The minority interest at 30 September 2002 was in respect of the 17.6% share of
Bruce Power profits entitlement of minority partners.  The Group's investment in
Bruce Power was sold on 14 February 2003.



Loss per Share



There was a loss per share of 13.1p per share in the reporting period compared
with a loss per share of 68.1p per share in the prior period.



In view of the Company's financial situation, no dividend is being proposed in
respect of the reporting period.  No dividend was proposed in respect of the
prior period.



Capital Expenditure



During the six months ended 30 September 2003 amounts that would previously have
been capitalised as fixed assets totalling to GBP47m were expensed as operating
costs following the fixed asset impairment review carried out in the year ended
31 March 2003.  In the prior period capital expenditure amounted to GBP147m and
included GBP91m for Bruce Power which was sold in February 2003.



The Directors will review the economic assumptions underlying the calculation of
fixed asset carrying values at 31 March 2004 in line with the requirements of
FRS11, and make revisions as appropriate.



Research and Development



We support  primarily  scientific and  engineering  research  activity  directed
toward securing further improvements in the reliability,  performance and safety
of our generating  business and related  activities.  In the six months ended 30
September 2003 and 2002 our  expenditure on research and  development  was GBP6m
and GBP8m respectively.





Liquidity and Capital Resources



Cash Flow



The table below sets out the key components of operating cash flow for the
periods indicated.





                                                                                    30 September
                                                                                                     Increase/
                                                                                                    (decrease)
                                                                            2003          2002
                                                                            GBPm          GBPm            GBPm
                                                                                                  

Operating loss including exceptional items                                  (33)         (157)             124
Exceptional items                                                             24           131           (107)
Operating loss excluding exceptional items                                   (9)          (26)              17
Depreciation                                                                  25           143           (118)
Nuclear liabilities discharged and charged to operating costs plus
regular contributions to the decommissioning fund                             35          (20)              55
Movements in other provisions                                                (2)          (31)              29
Working capital excluding exceptional items                                 (75)            10            (85)
Net cash flow from operating activities                                     (26)            76           (102)
Capital expenditure                                                            -         (147)             147
Net cash flow from operating activities net of capital expenditure          (26)          (71)              45




The improvement in operating cash flow reflects the following:

-         Discontinuation of Bruce Power operations which was a cash outflow of
GBP39m in the prior period;

-         Capital investment expenditure, which has been expensed to the profit
and loss account in the current period, has been reduced by GBP9m in the UK
operations;

-         Payments to BNFL in respect of nuclear liabilities discharged have
fallen by GBP49m and are based on the new contracts;

-         The GBP85m working capital movement from the prior period to the
reporting period is due in part to the exceptional release of accrual in June
2002 of GBP41m in relation to the agreement of revised terms for the Nuclear
Energy Agreement with Scottish Power and Scottish and Southern Energy.  Also,
contributing to the difference was the low output in September 2002 which
resulted in lower trade debtor balances of GBP45m due from Nuclear Energy
Agreement and Grid Trade Master Agreement and had the effect of improving the
working capital cash flow.



Financing



The cash flow for financing activities, comprises returns on investment,
servicing of finance, dividend payments and repayments of amounts borrowed net
of new loans.  Financing activity generated an inflow of GBP58m in the reporting
period compared with an outflow of GBP58m in the prior period.



Acquisitions and disposals



Acquisitions and disposals activity yielded an inflow of GBP9m in the reporting
period, reflecting receipt of pension related cash retentions in respect of the
disposal of our interests in Bruce Power.  The prior period cash outflow in
respect of acquisitions and disposals was GBP2m.



Management of liquid resources



The net cash outflow due to movements in financial  investments and increases in
term deposits was GBP69m in the reporting  period  compared with a net inflow of
GBP187m in the prior period. This reflects balances on term deposits rising from
GBP246m  at 31 March  2003 to  GBP315m  at 30  September  2003.  Balances  at 30
September 2002 were GBP22m compared with GBP209m at 31 March 2002.



Capital Resources



At 30 September 2003, we had total debt of GBP980m comprising



-       A project finance loan of GBP475m secured on the assets of Eggborough
Power Limited (EPL), our subsidiary that operates our Eggborough coal-fired
power station.  Amounts owed by EPL to the lenders are not guaranteed by British
Energy plc but British Energy guarantees the payment of amounts by British
Energy Power and Energy Trading Limited ("BEPET") to EPL under the Capacity and
Tolling Agreement ('CTA').  The contractual amounts payable by BEPET under the
CTA are calculated so as to cover EPL's borrowing requirements and operating
costs.  British Energy also provides a subordinated loan facility to EPL.  The
final instalment of loan principal will be repaid in 2011.  The loan currently
bears interest at LIBOR plus 1.3%.  It is proposed that these arrangements will
be restructured as part of the Proposed Restructuring of the Group.  At 30
September 2003 the effect of the Group's interest rate contracts is to classify
the borrowings as fixed rate.

-       An aggregate principal amount of GBP408m sterling denominated bonds due
between 2003 and 2016.  The bonds bear interest at a rate of between 5.9% and
6.2%.  An aggregate principal amount of GBP110m matured in March 2003 but
payment has been deferred as part of the standstill arrangements in our
financial restructuring.

-       Drawings of GBP97m under the GBP200m Credit Facility with the UK
Government (temporarily increased to GBP275m on 27 November 2003).  The Credit
Facility with the UK Government is available to use for cash and collateral
purposes.



The UK Government is entitled to require immediate repayment of the Credit
Facility if, in the opinion of the Secretary of State for Trade and Industry,
the restructuring cannot be implemented in the manner or timescale envisaged.
The facility agreement is cross-guaranteed by the principal Group subsidiaries
(excluding Eggborough Power (Holdings) Limited and Eggborough Power Limited) and
is secured by, among other things, fixed and floating charges and/or share
pledges granted by those subsidiaries.  This facility agreement also contains a
requirement to provide further security as required by the Secretary of State
for Trade and Industry provided that the creation of such security would not
cause a material default under any contract to which any member of the Group is
a party or is a breach of law.



Future liquidity



Our main source of liquidity is from our operating businesses.  Cash generation
by our operating businesses is dependent upon the reliability of our power
stations to produce electricity, the selling price achieved for our product,
operational risk and capital investment expenditure and maintenance
requirements.



The Group lost its investment grade rating in September 2002.  British Energy
will seek a new credit rating upon the issuance of new bonds as part of the
restructuring of the Group.  The loss of our investment grade rating has meant
that we now have to provide significant levels of collateral to our
counter-parties in order to maintain trading arrangements, thereby substantially
reducing the levels of cash resources available to us.



The Company is facing  short term  pressures  on  liquidity  resulting  from the
combined effect of seasonality,  the unplanned outages at Sizewell B and Heysham
1 and the increased levels of collateral and costs of unplanned  outages brought
about by the increased  level of volatility in  electricity  prices.  In view of
these pressures,  on 27 November 2003, the Secretary of State agreed, subject to
formal documentation,  to temporarily increase the amount of the Credit Facility
from GBP200m to GBP275m.  The  temporary  increase in the Credit  Facility  will
reduce to GBP200m at the earlier of receipt of AmerGen  proceeds and 22 February
2004. The Credit Facility will mature on the earlier of the date required by the
EC, 30  September  2004 and the date on which  the  restructuring  plan  becomes
effective if earlier, as more particularly  described in Note 1 to the Financial
Statements.



The Board is of the opinion that the working capital available to the Group is
not sufficient for the present requirements of the Group.  The Company is taking
steps, discussed further below, with a view to improving this situation, in
addition to the temporary increase in the Credit Facility.



Since first seeking support from the Secretary of State, British Energy has made
a good deal of progress towards restructuring the Group and achieving long term
financial viability.  This year, British Energy completed the sale of Bruce
Power in February, achieved agreement in principle on the Proposed Restructuring
and binding standstill arrangements with key creditors in February and March,
exchanged revised contracts with BNFL for front-end fuel services and back-end
fuel services in March and May respectively, entered into a conditional
agreement in October to sell its 50% interest in AmerGen to Exelon and reached
binding agreements in October with key creditor constituencies for the continued
standstill and ultimate recognition and compromise of their claims and with the
Secretary of State and the Nuclear Liabilities Fund for the restructuring of the
Group's nuclear liabilities.



The Proposed Restructuring and, therefore, the working capital available to the
Group, remains subject to a large number of significant uncertainties and
important conditions.  These include receipt by the Secretary of State of a
satisfactory notification from the Commission that, insofar as the proposals
involve the grant of State Aid by the UK Government, such aid is compatible with
the common market ('EC Approval').  The Secretary of State expects to receive
this notification by mid-2004.  Furthermore, the Secretary of State is entitled
not to proceed with the Proposed Restructuring if, in her opinion, the Group
will not be viable in all reasonably foreseeable conditions without access to
additional financing beyond that which is committed and will continue to be
available when required.



The Company expects to receive the proceeds from the disposal of AmerGen before
31 March 2004 which will significantly increase the Group's financial
flexibility.  Over the longer term, the Board is exploring initiatives to reduce
the demand for trading collateral and to achieve sufficient liquid resources to
implement the Proposed Restructuring.



If the disposal of AmerGen is not completed, or if there is a material downward
adjustment to the purchase consideration for the disposal of AmerGen, the
conditions to the Proposed Restructuring are not fulfilled, or if the Company's
cash generating initiatives are not achieved, in each case, within the time
scales envisaged or required, or if there is a material deterioration in the
Group's cash flow performance or outlook, or if the Government Facility ceases
to be available or if the standstill arrangements which the Group has entered
into with certain of its creditors are terminated, British Energy may be unable
to meet its financial obligations as they fall due and consequently the Company
may have to take appropriate insolvency proceedings, in which case the
distributions to unsecured creditors may represent only a small fraction of
their unsecured liabilities and there is unlikely to be any return to
shareholders.









ITEM 3 : QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



The following discussions about our risk management activities include
"forward-looking" statements that involve risk and uncertainties.  Actual
results could differ materially from those projected in the forward-looking
statements.



The following discussion relates to the financial instruments, derivative
instruments and derivative commodity instruments held by us at 30 September
2003, which are potentially sensitive to changes in interest rates, foreign
exchange rates, commodity prices and equity markets.  We use foreign exchange
contracts and other derivative instruments to hedge the primary market exposures
associated with our underlying assets, liabilities and committed transactions.
None of the instruments we have entered into are leveraged or held for
speculative purposes.  We use fixed rate interest rate borrowings and deposits
to reduce our exposure to fluctuations in interest rates.



FINANCIAL INSTRUMENTS AND RISK MANAGEMENT



Overview



The main financial risks we face are interest rate risk (on cash deposits and
borrowings), exchange rate risk (principally on fuel purchases) and trading risk
in England and Wales in respect of both price and volume output on the sale of
our electricity.  We are also exposed to risk associated with fluctuations in
the equity markets through the Decommissioning Funds and Pension Schemes.  We
have instituted policies for managing each of these risks, which have been
approved by the Board of Directors.  Each of these risks is discussed in more
detail below.



Our electricity trading risks are managed by the Power and Energy Trading
Division.  The Power and Energy Trading Division operate within policies and
procedures approved by the Board of Directors on the recommendation of the
Executive Director responsible for Trading acting on the advice of the Trading
Risk Sub-Committee, which is a sub-committee to the Group Risk Management
Committee.



Non-trading risks (i.e. cash resources, debt finance and financial risks) are
managed by the central treasury function (the "Treasury").  The Treasury
operates within policies and procedures approved by the Board of Directors on
the recommendation of the Finance Director acting on the advice of an executive
committee.  The Treasury function uses appropriate instruments, within specified
limits, to manage financial risk but is not permitted to take speculative, open
positions.  Both the Treasury and the Power and Energy Trading Division are
subject to regular scrutiny from our internal auditors.



Interest Rate Risk Management



Debt at 30 September 2003 comprised a project finance loan of GBP475m,  bonds in
an aggregate principal amount of GBP408m and drawings of GBP97m under the Credit
Facility.  Debt at 31 March 2003 comprised a project finance loan of GBP475m and
bonds in an aggregate principal amount of GBP408m.  The market value of our debt
varies with fluctuations in prevailing interest rates in the United Kingdom.



The Eggborough related derivative agreements (nominal amount of GBP398m as at 31
March 2003) have been amended post 31 March 2003.  The effect has been to fix
the respective receive side of the swap transactions from October 2003 onward.



At 30 September  2003 the total of  investments in liquid funds and cash at bank
amounted  to  GBP359m,  and had  maturity  dates due within  one year.  Cash not
immediately  required  for  business  purposes is invested  in  fixed-rate  term
deposits. At 30 September 2003 these term deposits were due to mature within one
day and earned  interest  at an average  rate of 3.5%.  Term  deposits  and bank
balances at 30 September  2003 include  GBP315m of cash which has been deposited
in collateral bank accounts. Availability of this cash is, therefore, restricted
over the  periods  of the  collateralised  positions.  At 31 March  2003 we held
short-term  deposits  totalling  GBP16m which had maturity dates of within seven
days.



Because the deposit terms are short term, the carrying value at 30 September
2003 approximates to the fair market value.



Foreign Exchange Risk Management



There are potential future foreign currency receivables in respect of the
retentions outstanding from the sale of Bruce Power and the potential sale of
AmerGen.  When these cash flows become more certain in the future the Group will
evaluate currency hedging opportunities, balancing the cost and availability of
entering into such transactions against the underlying currency risk.



At 30 September 2003 we had no foreign exchange contracts in place.



In addition, at 31 March 2003, there were deferred losses of GBP2m accounted for
as part of stock which arose on the rollover of maturing forward contracts used
for hedging the future purchase of fuel prior to and including the year ended 31
March 2003.  See note 20 to our consolidated financial statements at 31 March
2003.



Electricity Trading Risk Management



Our trading activities principally relate to supporting our generation business.
Our trading operations, therefore, principally act as wholesale marketers
rather than as pure financial traders, with the principal objective of
increasing the return on our assets while hedging the market risk associated
with the output of the plants.



Under NETA any mismatch between actual metered generation (or demand) and the
notified contract position is exposed to the prices in the balancing mechanism
run by the grid system operator.  Based on experience to date prices in the
balancing mechanism encourage forward contracting, as the price for spilling
energy to the system tends to be lower than the forward market price, whereas
the price for purchasing top-up supplies tends to be higher than the forward
market price.



We manage the risks in the wholesale market through a contracting strategy that
builds a portfolio of forward contracts with a variety of terms.  Contracts are
sold through several routes to market including bespoke bilateral contracts,
brokered over-the-counter trades in standard products, exchange trading and
direct sales to industrial and commercial customers.  The objective is to sell
forward all of our planned nuclear generation in England and Wales ahead of
delivery.  Eggborough provides a flexible generation capability which fulfils
three purposes designed to enhance our profitability.  Firstly, it provides a
means for compensating for unplanned lost output from nuclear units at short
notice; secondly it provides the capability to profile the generation shape to
meet the requirements of both wholesale and directly-supplied customers; and
thirdly, it provides a flexible capability that is offered to the system
operator via the balancing mechanism.  Output from our two stations in Scotland
will continue to be sold under the terms of the Nuclear Energy Agreement to
Scottish Power and Scottish and Southern Energy until April 2006, or the
introduction of British Electricity Transmission and Trading Arrangements,
whichever is earlier.



Our policy is to manage our credit exposure to trading and financial
counterparties within clearly defined limits.  Electricity trading activities
are strictly monitored and controlled through delegated authorities and
procedures, which include specific criteria for the management of counterparty
credit exposures.



Equity Risk Management



The Decommissioning Fund was established to provide for the eventual
decommissioning of our UK nuclear power stations.  Cash contributions are made
on a quarterly basis to a payment profile set out in a contract between us and
the Decommissioning Fund and are invested by the trustees of the Decommissioning
Fund in UK marketable fixed income debt, equity securities and property.  We are
solely responsible for contributions to the Decommissioning Fund.  Therefore,
the level of future contributions, which are reviewed every five years in
conjunction with our review of ultimate decommissioning costs, depend partly on
the estimated long-term investment performance of the equity and debt
instruments in which the contributions are invested and returns on investments
in property.  Income from dividends and other returns on the underlying
investments are retained by the Decommissioning Fund and then invested in debt
and equity securities.



The decommissioning fund included debt and equity securities with market values
of GBP36m and GBP319m respectively.



The balance on the decommissioning fund is recorded at GBP398m at 30 September
2003 which approximates to its market value.









ITEM 4 : CONTROLS AND PROCEDURES



The management of British Energy plc, including the Chief Executive Officer and
Finance Director, have evaluated the effectiveness of the Group's disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15
(e)) and concluded that, as of the end of the period covered by this report, the
disclosure controls and procedures are effective in ensuring that all material
information required to be filed in this report has been made known to them in a
timely fashion.  The required information was effectively recorded, processed,
summarised and reported within the time period necessary to prepare this report.
British Energy plc's disclosure controls and procedures are effective in
ensuring that information required to be disclosed in British Energy plc's
reports under the Exchange Act are accumulated and communicated to management,
including the Chief Executive Officer and the Finance Director, as appropriate
to allow timely decisions regarding required disclosure.  There have been no
significant changes in British Energy plc internal controls over financial
reporting that occurred during the period covered by this report that have
materially affected, or are reasonably likely to materially affect, British
Energy plc's internal control over financial reporting.









                               INDEX OF CONTENTS



                              FINANCIAL STATEMENTS



GROUP PROFIT AND LOSS ACCOUNT

GROUP BALANCE SHEET

GROUP CASH FLOW STATEMENT

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES



NOTES TO THE ACCOUNTS



1.         BASIS OF PREPARATION

2.         TURNOVER AND OPERATING PROFIT

3.         OPERATING COSTS

4.         FINANCING CHARGES/(CREDITS)

5.         TAXATION

6.         LOSS PER SHARE

7.         FIXED ASSETS

8.         CREDITORS AND PROVISIONS

9.         RECONCILIATION OF OPERATING CASH FLOW

10.        RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

11.        COLLATERAL

12.        CONTINGENT ASSETS

13.        CONTINGENT LIABILITIES

14.        POST BALANCE SHEET EVENTS

INDEPENDENT REVIEW REPORT TO BRITISH ENERGY PLC











GROUP PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 (unaudited)


                                                                                Total Group Results
                                                                         6 months      6 months          Year
                                                                            ended         ended         ended
                                                             Notes      30 Sep 03     30 Sep 02     31 Mar 03
                                                                             GBPm          GBPm          GBPm
                                                                                              

Group and share of joint venture turnover - continuing                        795           995         2,074
activities
Exceptional income                                             2                -            41            41
Group and share of joint venture turnover including                           795         1,036         2,115
exceptional income
Less:  share of turnover in joint venture                                   (118)         (127)         (212)





Turnover:

  Continuing activities                                        2              677           703         1,528
  Discontinued activities                                                       -           206           375
Turnover                                                       2              677           909         1,903
Operating costs before exceptional items                       3            (686)         (894)       (1,758)
Exceptional operating items                                    3             (24)         (172)       (3,947)
Operating costs after exceptional items                                     (710)       (1,066)       (5,705)
Operating (loss)/profit:

  Continuing activities                                                      (33)         (195)       (3,899)
  Discontinued activities                                                       -            38            97
Operating (loss)/profit                                                      (33)         (157)       (3,802)
Share of operating profit of joint venture                                     43            45            43
Operating profit/(loss):  Group and share of joint                             10         (112)       (3,759)
venture
Loss on sale of business                                                        -             -          (35)
Financing (charges)/credits:
Revalorisation and net interest                                4            (124)         (143)         (277)
Exceptional financing charges                                  4                3             -          (62)
Exceptional revalorisation credits/(charges)                   4               40          (82)         (159)
Loss on ordinary activities before taxation                                  (71)         (337)       (4,292)
Taxation on loss on ordinary activities                        5                -          (60)           378
Share of taxation for joint venture                            5              (8)           (6)          (10)
Loss on ordinary activities after taxation                                   (79)         (403)       (3,924)
Minority interest                                                               -           (7)          (17)
Loss for the period attributable to shareholders                             (79)         (410)       (3,941)

Loss per share (p):
Basic                                                          6           (13.1)        (68.1)       (654.7)





GROUP BALANCE SHEET

AT 30 SEPTEMBER 2003 (unaudited)







                                                            Notes    30 Sep 03       30 Sep 02       31 Mar 03
                                                                          GBPm            GBPm            GBPm
Fixed assets
Tangible assets and investments                               7            793           4,850             763

Current assets
Decommissioning fund                                                       398             332             334
Stocks                                                                     376             526             360
Debtors                                                                    385             618             387
Investments - liquid funds                                   11            315              22             246
Cash at bank                                                                44              62              87
                                                                         1,518           1,560           1,414
Creditors: amounts falling due within one year                8        (1,393)           (885)         (1,185)

Net current assets                                                         125             675             229

Total assets less current liabilities                                      918           5,525             992

Creditors: amounts falling due after more than one year       8        (2,613)         (2,726)         (2,640)
Provisions for liabilities and charges                        8        (1,776)         (2,598)         (1,735)
Net (liabilities)/assets                                               (3,471)             201         (3,383)

Capital and reserves
Called up equity share capital                                             277             277             277
Share premium                                                               76              76              76
Capital redemption reserve                                                 350             350             350
Profit and loss account                                                (4,267)           (646)         (4,179)
Equity shareholders' (deficit)/funds                                   (3,564)              57         (3,476)
Non-equity shareholders' funds                                              93              93              93
Minority interests                                                           -              51               -
                                                                       (3,471)             201         (3,383)







GROUP CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 (unaudited)


                                                                   6 months         6 months             Year
                                                                      ended            ended            ended
                                                        Note      30 Sep 03        30 Sep 02        31 Mar 03
                                                                       GBPm             GBPm             GBPm

Net cash (outflow)/inflow from operating activities       9            (26)               76              336

Returns on investment and servicing of finance                         (39)             (20)             (84)

Taxation (paid)/received                                               (15)                6                3

Payments to acquire tangible fixed assets                                 -            (147)            (282)
Capital expenditure and financial investment                              -            (147)            (282)

Acquisitions and disposals                                                9              (2)              262

Equity dividends paid                                                     -             (34)             (31)

Management of liquid resources                                         (69)              187             (37)

Financing                                                                97              (4)             (80)

(Decrease)/increase in cash                                            (43)               62               87













STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 (unaudited)


                                                                   6 months         6 months             Year
                                                                      ended            ended            Ended
                                                                  30 Sep 03        30 Sep 02        31 Mar 03
                                                                       GBPm             GBPm             GBPm

Loss for the period                                                    (79)            (410)          (3,941)

Translation differences on foreign currency net                         (9)             (24)             (25)
investments

Total recognised losses since last report                              (88)            (434)          (3,966)








Notes to the Accounts

for the six months ended 30 September 2003 (unaudited)



NOTES TO THE FINANCIAL STATEMENTS



1.             BASIS OF PREPARATION



(i)                Introduction



These interim financial statements have been prepared on the basis of accounting
policies consistent with those set out in the Group financial statements for the
year ended 31 March 2003.  In the following discussion British Energy plc is
referred to as 'British Energy' or 'the Company' and 'the Group' refers to the
Company and its subsidiaries.



Fixed annual charges are apportioned to the interim period on the basis of time
elapsed.  Other expenses are accrued in accordance with the same principles used
in the preparation of the annual accounts.



On 14 February 2003 the Group disposed of its stake in Bruce Power and Huron
Wind, therefore, their results up to the point of disposal have been classified
as discontinued operations within prior reporting periods.  All other activities
of the Group have been shown as continuing activities.



The financial statements for the six months ended 30 September 2003 are
unaudited but have been formally reviewed by the auditors and their report to
the Company is set out below.  The figures for the year ended 31 March 2003 have
been extracted from the full financial statements for that year, which have been
delivered to the Registrar of Companies.  The report of the auditors on these
accounts was unqualified and did not contain a statement under either section
237(2) or section 237(3) of the Companies Act 1985.  The auditors' report
included within the Report and Accounts of the Group for the year ended 31 March
2003 includes a reference to a fundamental uncertainty in respect of the going
concern basis of the Group.  The interim financial statements were approved by
the Board of Directors on 16 December 2003.



(ii)                Background to restructuring



Having reviewed the longer-term  prospects of the business,  on 5 September 2002
the Directors of British Energy  announced  that they had no alternative  but to
seek  financial  support  from the UK  Government.  On 9  September  2002 the UK
Government  granted the Company a credit  facility of up to GBP410m (the 'Credit
Facility')  to  provide   working   capital  for  British   Energy's   immediate
requirements  and to allow British  Energy to stabilise its trading  position in
the UK and North America. On 26 September 2002 British Energy announced that the
UK Government had agreed to extend a revised  Credit  Facility for up to GBP650m
until 29 November 2002 to give the Company  sufficient  opportunity to develop a
restructuring  plan. The Credit  Facility is  cross-guaranteed  by the principal
Group subsidiaries (excluding Eggborough Power (Holdings) Limited and Eggborough
Power Limited ('EPL')) and is secured by, among other things, fixed and floating
charges and/or share pledges granted by those subsidiaries.  The Credit Facility
also  contains a  requirement  to provide  further  security  as required by the
Secretary of State for Trade and Industry (the  'Secretary  of State')  provided
that the creation of such security would not cause a material  default under any
contract to which any member of the Group is a party or a breach of law.



On 28 November 2002 British Energy announced that the Credit Facility had been
further extended until 9 March 2003.



On 14 February 2003 British Energy and certain of its subsidiaries announced
that they had entered into binding standstill agreements, namely:



(a)                 The Standstill Agreement between British Energy and its
subsidiaries and the bank syndicate that provided financing for the Eggborough
coal fired power station (the 'Eggborough Banks'), The Royal Bank of Scotland
plc ('RBS') as provider of a letter of credit to the Eggborough Banks;  our
significant trade creditors, Teesside Power Limited ('TPL'), TotalFinaElf Gas
and Power Limited now Total Gas & Power Limited ('Total') and Enron Capital &
Trade Europe Finance LLC ('Enron') (TPL, Total and Enron being collectively
referred to as the 'Significant Creditors') and British Nuclear Fuels plc
('BNFL'); and



(b)                 The Bondholder Restructuring Agreement between British
Energy, British Energy Generation Limited ('BEG'), British Energy Generation UK
Limited ('BEGUK') and certain holders of British Energy bonds due in 2003, 2006
and 2016 (collectively the 'Bondholders').



On 7 March 2003 British Energy announced that the UK Government had agreed to
extend the Credit Facility in the reduced amount of GBP200m, such that it would
mature on the earlier of (1) 30 September 2004, (2) the date on which the
proposed restructuring, as outlined in (iii) below, (the 'Proposed
Restructuring') becomes effective or (3) any date notified by the Secretary of
State to British Energy on which repayment of amounts outstanding under the
Credit Facility are required as a result of a Commission decision or an
obligation under EC law (the 'Final Maturity Date').  In the meantime the
Secretary of State may require repayment of the Credit Facility if she concludes
that the Proposed Restructuring cannot be completed in the manner or time scales
envisaged.



The Group's ability to provide alternative credit support to parent company
guarantees for our trading operations is, and will, until the completion of the
Proposed Restructuring, be subject to our continued access to funds under the
Credit Facility.  We have retained a trading relationship with a high proportion
of our existing contracted counter-parties during the period since our
announcement of 5 September 2002, although in most cases we have been required
to provide alternative credit support to a parent company guarantee.  Given the
financial circumstances of the Group, certain contracts may be capable of being
terminated.  Such termination may result in termination payments being payable
as well as having an adverse effect on our cash flows.



The Credit  Facility was  temporarily  increased to GBP275m on 27 November 2003.
The additional  GBP75m matures on the earlier of 22 February 2004 or the receipt
of the proceeds from the sale of AmerGen.



The Company agreed the proposed disposal of its 50% interest in AmerGen to
Exelon for US$277m, subject to various adjustments and conditions including a
break fee of US$8.295m payable to FPL Group Inc.  The Company expects to
complete the disposal shortly and, in any event no later than 31 March 2004.



Over the longer term the Board is exploring initiatives to reduce the demand for
trading collateral and to achieve sufficient liquid resources to implement the
Proposed Restructuring, including investigating the availability of third party
financing.



1.             BASIS OF PREPARATION (Continued)



(iii)         Terms of the Proposed Restructuring



On 1 October 2003, the Company announced that it had agreed the terms of the
proposed restructuring of the Company (the Group) with certain of the Group's
creditors and the Secretary of State (the 'Proposed Restructuring').  The
restructuring proposals are set out in:



(a)                 The Creditor Restructuring Agreement dated 1 October 2003
and entered into by the Company, certain other Group companies, the Significant
Creditors, RBS, the members of the ad hoc committee of British Energy's
Bondholders and BNFL (as amended by a side letter entered into on 31 October
2003) (the 'Creditor Restructuring Agreement'); and



(b)                 The Government Restructuring Agreement dated 1 October 2003
entered into between the Company, BEGUK, BEG, British Energy Power and Energy
Trading Limited ('BEPET'), British Energy Investment Limited ('BEIL'), District
Energy Limited, British Energy International Holdings Limited ('BEIHL'), British
Energy US Holdings Inc. ('BEUSH'), British Energy L.P., Peel Park Funding
Limited, the Secretary of State, the Nuclear Generation Decommissioning Fund
Limited (to be renamed the Nuclear Liabilities Fund Limited ('NLF') and the
trustees of the Nuclear Trust (the 'Government Restructuring Agreement').



The Proposed Restructuring is based on the heads of terms signed on 14 February
2003.



The principal features of the Proposed Restructuring include:



-         Compromising the existing claims of Significant Creditors in exchange
for new bonds and new ordinary shares and settling new off-take arrangements for
Eggborough;



-         The amendment and extension of the BNFL contracts for front-end and
back-end related fuel services for the Group's AGR stations announced on 16 May
2003 and the implementation of a new trading strategy;



-         Establishing the NLF for uncontracted nuclear liabilities and
decommissioning costs to which British Energy would make initial and ongoing
contributions;



-         The Government funding liabilities relating to historic spent fuel and
any shortfall in the NLF.



Creditor Restructuring Agreement



The restructuring proposals set out in the Creditor Restructuring Agreement were
subject to certain initial requirements for creditor approvals and sign ups
being obtained by 31 October 2003 which have been satisfied.



Completion of the Proposed Restructuring is subject to a number of initial
conditions including, amongst other things, the receipt by the Secretary of
State of a satisfactory notification from the European Commission that insofar
as the proposals involve the grant of State Aid by the UK Government, such aid
is compatible with the common market.  The Secretary of State expects to receive
this notification by mid 2004.



In addition, the Proposed Restructuring is conditional upon there being no
material adverse change.  For the purposes of the Creditor Restructuring
Agreement, a material adverse change is defined as a material adverse change in
the current or future business or operations, the financial or trading position,
profits or prospects of the British Energy group as a whole or of EPL or a
change in the current or future business or operations, the financial or trading
position, profits or prospects of the Group as a whole which is likely to have a
material adverse effect on the value of the new bonds, the new ordinary shares
(to be issued as part of the Proposed Restructuring), the CTA Global Bond (see
below) or the new Eggborough arrangements.



Under the terms of the  Creditor  Restructuring  Agreement  the  creditors  have
agreed  (subject to certain  conditions)  to extinguish  their  existing  claims
against  the  Group in  exchange  for  GBP275m  of new  bonds,  GBP150m  of bond
equivalent  payments  by means of the CTA Global  Bond (see  below) and at least
97.5% of the  issued  ordinary  shares of the new  parent  company  of the Group
('Newco1').



The Eggborough  Banks, as creditors with security over Eggborough Power Station,
have agreed  (subject to certain  conditions) to replace their existing  secured
claims with a right to payments under an Amended and Restated  Credit  Agreement
(the 'Amended Credit  Agreement') having a payment profile equivalent to GBP150m
of new  bonds  secured  over the CTA  Global  Bond to be held by EPL  (the  'CTA
Bonds').  In addition,  the Eggborough  Banks will have an option to acquire the
Eggborough station either through a share or asset purchase in 2010 upon payment
of an approximate GBP104m break fee and the extinguishment of the principal then
outstanding under the Amended Credit  Agreement.  This option may be accelerated
in the event of a default under the Amended Credit Agreement.  The security over
Eggborough Power station under the Amended Credit Agreement will secure both the
GBP150m bond-equivalent  payments and, through an indemnity for non-performance,
the option acceleration.



As part of the Proposed Restructuring, the Company proposes to cancel its
existing shares at 4428/43 pence each and A shares of 60 pence each under a
scheme of arrangement with shareholders (the 'Members' Scheme'), and issue new
ordinary shares equal to 2.5% of the issued share capital of Newco1 to
shareholders immediately following implementation of the Proposed Restructuring
as well as warrants to subscribe for a further 5.0% of fully diluted share
capital (excluding the impact of conversion of the NLF Cash Sweep Payment (see
below)) immediately following implementation of the Proposed Restructuring.
This will result in a very significant dilution to the holdings of the existing
shareholders.  If the shareholders do not approve the Members' Scheme or for any
other reason the Members' Scheme is not implemented, but shareholders instead
vote in favour of the Company selling all its business and assets to Newco 2,
they will receive only the warrants.  If the shareholders do not vote in favour
of either proposal, they will receive no shares or warrants.



1.             BASIS OF PREPARATION (Continued)



(iii)         Terms of the Proposed Restructuring (continued)



The Creditor Restructuring Agreement restricts the Significant Creditors, the
Eggborough Banks, RBS, each Bondholder who signs up to the Creditor
Restructuring Agreement (the 'Consenting Bondholders') and BNFL (together the '
Consenting Creditors') from taking any steps to initiate insolvency proceedings
or demand or accelerate any amounts due and payable by British Energy during the
period of the standstill until the earliest of;



(i)                    30 September 2004 under the Standstill Agreement of 14
February 2003 or the Restructuring Longstop Date once new standstill
arrangements are entered into pursuant to the restructuring, such date being 12
noon on the earlier of 31 January 2005 and 120 days from the satisfaction of the
initial conditions to the Proposed Restructuring;



(ii)                   termination of the Creditor Restructuring Agreement, the
new standstill arrangements or the bondholders restructuring agreement in
accordance with their terms;  or



(iii)                 the completion of the Proposed Restructuring (the '
Standstill Period').



Under the standstill arrangements, RBS, the Eggborough Banks, Significant
Creditors and Bondholders are to be paid interest but not principal in respect
of any claims against the Group.  Interest will continue to be paid to
Bondholders and the Eggborough Banks until the completion, or earlier
termination, of the Proposed Restructuring.  In respect of the Significant
Creditors and RBS, interest was paid first on 25 March 2003 and is subsequently
payable on the last business day of every six month period thereafter based on
the agreed claim amounts (except in the case of RBS where interest payments will
be based on the present value of its claim amount as at 14 February 2003).



Any of the Consenting Creditors may terminate the standstill arrangements
following the occurrence of a termination event.  The termination events
include, inter alia, certain insolvency events affecting the Company, BEG,
BEGUK, BEPET or EPL; acceleration of the Credit Facility; and any of the
Company, BEG, BEGUK, BEPET or EPL failing to discharge certain continuing
obligations.  If the standstill arrangements terminate, the Creditor
Restructuring Agreement will also terminate and vice versa.



The Creditor Restructuring Agreement also contains certain covenants by British
Energy for the benefit of the Consenting Creditors that have signed the
agreements, including certain limitations on acquisitions and disposals, a
prohibition on the payment of dividends and on the issuing of equity and a
negative pledge.



Government Restructuring Agreement



The Government Restructuring Agreement provides for the circumstances in which
the Secretary of State will support the Proposed Restructuring, including
entering into the agreements with the Group and, in certain cases, the NLF which
effect the proposals regarding the manner in which the decommissioning and other
uncontracted liabilities of the Group are to be funded and the agreements
relating to the funding of certain of the contracted nuclear liabilities of the
Group (the 'Nuclear Liabilities Agreements').  It also effects some further
amendments to the Credit Facility.  As noted above the Credit Facility will
terminate (unless previously extended) on the Final Maturity Date.



Under the Government Restructuring Agreement, the obligations of the Secretary
of State to support the Proposed Restructuring (including as the holder of a
number of special shares) and of the parties to the Nuclear Liabilities
Agreements to enter into them are/were conditional on, inter alia:



-               the Creditor Restructuring Agreement becoming unconditional in
all respects by the Restructuring Longstop Date;



-               the Secretary of State not having determined and notified
British Energy in writing that, in her opinion, the Group (including two newly
incorporated public companies created to effect the restructuring  (Newco 1 and
Newco 2 an intermediate holding company) will not be viable in all reasonably
foreseeable conditions without access to additional financing (other than
financing which the Secretary of State is satisfied has been committed and will
continue to be available when required);



-                      there being no continuing event of default under the
Credit Facility;



-                      receipt by the Secretary of State of copies of letters
from the Group's auditors and financial advisers giving the confirmations
referred to in the terms of Rule 2.18 of the UKLA Listing rules without
qualification (whether or not Newco 1 is to be listed on the Official List of
the UKLA);



-               the representations and warranties given by the members of the
British Energy Group in the Government Restructuring Agreement being true,
accurate and not misleading when given and if repeated at the effective date of
the Proposed Restructuring; and



-               there being no breach of any undertaking given by any British
Energy party under the Government Restructuring Agreement which, in the opinion
of the Secretary of State, is or is likely to be material in the context of the
Proposed Restructuring.



If any of the conditions are not fulfilled or waived by the Secretary of State
by the time specified in the requisite conditions or if no such date is
specified, by the Restructuring Longstop Date, the Government Restructuring
Agreement will terminate and if a material adverse change (as defined in the
Creditor Restructuring Agreement) occurs at any time before the order
sanctioning the scheme of arrangement to be proposed by the Company to RBS and
the Bondholders is filed with the Registrar of Companies in Scotland, the
Secretary of State may give written notice to British Energy to terminate the
Government Restructuring Agreement.





1.             BASIS OF PREPARATION (Continued)



(iii)         Terms of the Proposed Restructuring (continued)



Under the Nuclear  Liabilities  Agreements  to be entered  into  pursuant to the
Government Restructuring Agreement, the NLF will assume financial responsibility
for discharging certain of the Group's  uncontracted nuclear liabilities and the
costs of decommissioning  the Group's nuclear power stations,  and the Secretary
of State  will  assume  financial  responsibility  for  certain  of the  Group's
contracted  nuclear  liabilities and any shortfall in the NLF. In  consideration
for this assumption of financial  responsibility,  the  restructured  Group will
issue  GBP275m in new bonds to the NLF. In  addition,  members of the Group will
make the following payments to the NLF; (i) fixed decommissioning  contributions
of GBP20m per annum  (indexed to RPI and tapering as stations  are  scheduled to
close); (ii) GBP150,000 (indexed to RPI) for every tonne of fuel loaded into the
Sizewell B reactor after completion of the Proposed Restructuring;  and (iii) an
annual  contribution  equal to a percentage  of the Group's  adjusted  cash flow
(initially,  and not to exceed,  65% subject to adjustment) (the 'NLF Cash Sweep
Payment').



The entitlement of the NLF to the NLF Cash Sweep Payment is convertible into an
equity shareholding in Newco1 equal to the same percentage of the thereby
enlarged issued share capital.  The terms of the convertible ordinary shares
into which such entitlement will convert will limit the general voting rights
attaching to such shares to a maximum of 29.9%.



In addition, under the Nuclear Liabilities Agreements British Energy is required
to establish and maintain cash reserves to provide collateral for trading and
operations, cover lost revenue and costs resulting from plant outages and to
meet other working capital requirements (the 'Cash Reserve').  The initial
target amount for the Cash Reserve is GBP490m plus the amount by which cash
employed as collateral exceeds GBP200m.



The above is a summary only and investors and others are strongly advised to
read the entire announcement which was issued by the Company on 1 October 2003,
which contains additional important information not included in this summary.



(iv)                Principles underlying Going Concern Assumption



The financial statements have been prepared on a going concern basis in
accordance with FRS18, because British Energy has not been liquidated nor is it
ceasing to trade and the Directors are currently seeking an alternative to
liquidating the Company or ceasing to trade.  The validity of this assumption
depends on the continuation of the standstill arrangements with certain
creditors and the financial assistance from the Secretary of State under the
Credit Facility and no material deterioration in the Group's cash flow
performance or outlook, the completion of the AmerGen disposal without any
material downward adjustment to the purchase consideration, fulfilment of the
conditions of the Proposed Restructuring and achievement of the Group's cash
generation initiatives, in each case within the time scales envisaged or
required.  This assumption is, therefore subject to a large number of
significant uncertainties and important considerations.



If for any reason British Energy is unable to meet its financial obligations as
they fall due the Company may have to take appropriate insolvency proceedings
and cease to be a going concern, in which case adjustments may have to be made
to reduce the monetary values of assets to the recoverable amounts, to provide
for further liabilities that might arise and to reclassify the fixed assets and
long term liabilities as current assets and liabilities.



Notes to the Accounts

For the six months ended 30 September 2003 (unaudited)





2.                TURNOVER AND OPERATING PROFIT




                                                                  6 months         6 months             Year
                                                                     ended            ended            ended
                                                                 30 Sep 03        30 Sep 02        31 Mar 03
(a)  Turnover                                                          TWh              TWh              TWh
                                                                                                

Output
   United Kingdom                                                     35.5             31.7             69.5
   Canada (discontinued)                                                 -             10.6             19.2
                                                                      35.5             42.3             88.7

Continuing activities:                                                GBPm             GBPm             GBPm
United Kingdom
   Wholesale generation sales                                          323              374              852
   Direct supply sales                                                 340              267              603
   Turnover from continuing activities excluding exceptional           663              641            1,455
credits
   Miscellaneous income                                                 14               21               32
   Exceptional income                                                    -               41               41
Turnover from continuing activities                                    677              703            1,528
Discontinued activities: Canada                                          -              206              375
Total turnover                                                         677              909            1,903





Turnover from discontinued activities in 2002 and 2003 represents the sales by
Bruce Power which was acquired on 12 May 2001 and sold on 14 February 2003.



In the six months ended 30 September 2002 the Company agreed revised terms for
the Nuclear Energy Agreement ('NEA') with Scottish Power and Scottish and
Southern Energy which resulted in the release of GBP41m in respect of cash
previously received, and was reported as an exceptional item in the 2002/03
results.



(b)  Operating (loss)/profit



A geographical analysis of operating (loss)/profit before exceptional items is
as follows.




                                                                    6 months         6 months             Year
                                                                       ended            ended            Ended
                                                                   30 Sep 03        30 Sep 02        31 Mar 03
                                                                        GBPm             GBPm             GBPm
                                                                                                  

   United Kingdom                                                        (9)             (64)                7
   Canada                                                                  -               38               97
                                                                         (9)             (26)              104








Notes to the Accounts

For the six months ended 30 September 2003 (unaudited)



3.                OPERATING COSTS


                                                                    6 months         6 months             Year
                                                                       ended            ended            Ended
                                                                   30 Sep 03        30 Sep 02        31 Mar 03
                                                                       GBPm              GBPm             GBPm
Continuing Activities
  Fuel                                                                   184              167              371
  Materials and services                                                 262              218              425
  Staff costs                                                            112              111              227
  Depreciation                                                            25              136              273
                                                                         583              632            1,296
  Energy supply costs                                                    103               94              184
                                                                         686              726            1,480

Discontinued Activities
  Fuel                                                                     -               11               17
  Materials and services                                                   -               93              143
  Staff costs                                                              -               61              111
  Depreciation                                                             -                3                7
                                                                           -              168              278
Total operating costs                                                    686              894            1,758

Exceptional operating items
  Materials and services                                                  37               53               94
  Depreciation                                                             -                -            3,738
  Amounts (credited)/written off non-operational assets                 (13)              119              115
                                                                          24              172            3,947

Analysis of exceptional items
  Restructuring costs                                                     37                7               35
  Stock obsolescence                                                       -                -               57
  Onerous trading contracts                                                -               46                2
  Fixed asset write down                                                   -                -            3,738
  Investments in own shares write down                                     -               98              102
  UK decommissioning fund (credit)/write down                           (13)               21               13
                                                                          24              172            3,947




There were exceptional materials and services costs in respect of advisory fees
and other costs associated with restructuring the Group's activities.  Costs of
GBP37m were incurred within the six months ended 30 September 2003.



The GBP13m exceptional credit on the UK decommissioning  fund reverses the write
down made in the year ended 31 March 2003. At 30 September 2003 the market value
of the UK  decommissioning  fund  had  increased  to  GBP398m  (31  March  2003:
GBP334m), thereby necessitating an exceptional credit of GBP39m in the period to
reverse previously written-down revalorisation amounts. The remaining balance of
the  restatement to market value of GBP26m has been dealt with as an exceptional
financing credit (see Note 4).



Exceptional operating costs amounting to GBP172m and GBP3,947m were reported for
the six  months  ended  30  September  2002 and the  year  ended  31 March  2003
respectively. These amounts are further explained as follows:



-  Charges  incurred  on  advisory  fees and  other  costs  associated  with the
restructuring  of the  Group's  activities  of GBP35m in the year ended 31 March
2003, GBP7m of which was charged in the six months ended 30 September 2002.

- A charge of GBP57m in the year  ended 31 March 2003 to  provide  for  obsolete
stores and spares.

- A charge of GBP46m in the six months to 30 September 2002, and total charge of
GBP2m  for the  year  to 31  March  2003 to  provide  for the  onerous  pre-NETA
contracts with TPL, Total and Enron.

- Exceptional  depreciation  charge of GBP3,738m in the year ended 31 March 2003
in respect of a review of  economic  values and net  realisable  values of fixed
assets (see note 7(ii)).

- A write down of  GBP102m in the year ended 31 March 2003 (of which  GBP98m was
charged  in the six  months  ended  30  September  2002)  to  reflect  permanent
diminution in the value of own shares held in employee trusts.

- The investments held within the UK  decommissioning  fund were written down to
reflect a reduction in market value, resulting in a charge for the six months to
30 September 2002 of GBP21m, and a total charge for the year to 31 March 2003 of
GBP13m.





Notes to the Accounts

For the six months ended 30 September 2003 (unaudited)





4.                FINANCING CHARGES/(CREDITS)


                                                                  6 months         6 months             Year
                                                                     ended            ended            ended
                                                                 30 Sep 03        30 Sep 02        31 Mar 03
                                                                      GBPm             GBPm             GBPm
                                                                                                

Revalorisation of nuclear liabilities
   changes in price levels                                              57               65              117
   release of discount for the period                                   59               55              111
                                                                       116              120              228
Revalorisation of other provisions                                       -               10               10
Revalorisation of decommissioning fund                                (16)             (14)             (29)
Share of revalorisation of joint venture                               (1)              (2)              (4)
Revalorisation charge before exceptional items                          99              114              205
Interest payable less receivable                                        25               29               72
Total financing charges prior to exceptional (credits)/                124              143              277
charges
Exceptional revalorisation (credits)/charges                          (40)               82              159
                                                                        84              225              436
Exceptional interest and other financing (credits)/charges             (3)                -               62
                                                                        81              225              498




At 30  September  2003  the  market  value  of the UK  decommissioning  fund had
increased  to  GBP398m  (31  March  2003:  GBP334m),  thereby  necessitating  an
exceptional  credit of GBP39m in the period to reverse  previously  written-down
amounts.  The  market  value  remains  below the  amount  which  would have been
calculated by  revalorising  on an actuarial  basis the total amounts which have
been invested in the fund. As a result of the  decommissioning  fund  receivable
being restated at market value, a GBP13m exceptional credit has been recorded in
operating costs to reverse a prior write-down of  non-operational  assets, and a
GBP26m  exceptional credit has been recorded in finance charges to reverse prior
write-down of previous revalorisation.



The market value of the AmerGen decommissioning fund had also increased over the
six months to 30 September 2003, and the British Energy share of the exceptional
credit is GBP14m.



At 30 September 2003 the value of the interest rate swaps provision was marked
to market and the resultant valuation was lower than the book value, thereby
resulting in an exceptional credit of GBP3m.



At  30   September   2002  and  31  March  2003  the  market  value  of  the  UK
decommissioning fund was lower than the values that would have been derived from
revalorising  the cost of the  investment.  The  differences  were  GBP103m  and
GBP124m of which GBP82m and GBP111m  respectively were recognised as exceptional
financing charges with the remainder classified as write-offs of non-operational
assets. At 31 March 2003 the British Energy share of the adjustment  required to
reduce the AmerGen decommissioning fund to market value was a charge of GBP48m.



An exceptional  charge of GBP56m was recognised for the year ended 31 March 2003
for interest rate swaps. In addition an exceptional charge of GBP6m was recorded
for the write off of borrowing costs which had been  previously  capitalised and
were being  amortised  over the  expected  duration  of the loan  financing  the
acquisition of the Eggborough power station.





5.                TAXATION


                                                                  6 months         6 months             Year
                                                                     ended            ended            ended
                                                                 30 Sep 03        30 Sep 02        31 Mar 03
                                                                      GBPm             GBPm             GBPm
                                                                                                

Tax on results excluding exceptional items                             (8)             (78)              (2)
Tax on exceptional items                                                 -               12              370
                                                                       (8)             (66)              368




The tax charge for the six months ended 30 September  2003 comprises an overseas
tax  charge  of GBP8m in  respect  of the  Group's  liability  for its  share of
AmerGen's taxable profits.



The  exceptional  tax credit for the year ended 31 March 2003 of GBP370m relates
to a deferred  taxation  credit on  exceptional  items of GBP520m  offset by the
de-recognition of the deferred taxation asset of GBP150m.



For the six months ended 30 September 2002 the GBP12m credit relates to the
taxation effect of the exceptional items incurred.



6.             LOSS PER SHARE



The loss per share for the period has been  calculated on the basis of a loss on
ordinary activities after taxation,  minority interests and non-equity dividends
of  GBP79m  (30  September  2002:  loss  of  GBP410m;  31  March  2003:  loss of
GBP3,941m);  and by  reference  to a weighted  average of 602  million  ordinary
shares (30 September 2002: 602 million ordinary shares;  March 2003: 602 million
ordinary shares).



Notes to the Accounts

For the six months ended 30 September 2003 (unaudited)



7.             FIXED ASSETS



(i)                Investment in Own Shares



Tangible assets and investments includes amounts in respect of own shares held
in trust to satisfy obligations under share options granted to Directors and
employees of the Company.



As at 30 September 2003 the British Energy  Employee Share Trust held 21,734,839
ordinary  shares at an average  cost of  GBP4.68  for a total  consideration  of
GBP101m.  The Qualifying  Employee Share Trust ('QUEST') held 5,292,103 ordinary
shares at a cost per share of GBP5.32  per share  (GBP28m)  and  19,165,471  'A'
shares at a cost of 60p per share (GBP11m).



The book value of the shares held by the employee trusts was written down to
their market value of GBP2m in the accounts of the year ended 31 March 2003 to
recognise the diminution in value due to the deterioration of the long-term
prospects of the Company.



(ii)                Carrying Value of Fixed Assets



The Directors reviewed the economic values and net realisable values of the
Group's fixed assets at 31 March 2003 and compared them to their book value.  As
a result of this review the carrying value of fixed assets was written down by
GBP3,738m.



The carrying value of the nuclear stations was calculated by discounting the
expected future cash flows from continued use of the assets, having made
appropriate assumptions regarding future operating performance.  The valuation
of Eggborough was based on an assessment of net realisable value.



The electricity price assumptions were a very significant component of the asset
value calculation.  The Directors considered the market's views on future prices
of wholesale electricity and also the forecasts specifically commissioned for
the Company.  In determining the price assumptions the Directors took a cautious
view on there being a significant recovery in prices.  As market prices are
outside the Directors' control actual prices may differ from those forecast.



The Directors will review the economic assumptions underlying the calculation of
fixed asset carrying values at 31 March 2004 in line with the requirements of
FRS11, and make revisions as appropriate.



(iii)                Investment in AmerGen



The Company  announced  on 10 October  2003 that it had  entered  into a legally
binding  agreement to dispose of British Energy's entire 50% interest in AmerGen
to Exelon Generation  Company LLC ('Exelon'),  which is the Company's partner in
AmerGen,  for  approximately  US$277m  (GBP167m at an  exchange  rate of $1.66 :
GBP1.00  based on the  hedge  rates  applicable),  in cash  subject  to  certain
pre-closing  adjustments  including  a break fee  payable to FPL Group Inc.  for
US$8.295m. The disposal of British Energy's interest in AmerGen will be effected
through the sale of its subsidiary, BEUSH to Exelon.



The disposal is subject to approval by the Company's Shareholders at an
Extraordinary General Meeting to be held on 22 December 2003.  All US regulatory
approvals have been received and the Company expects to complete the disposal
shortly and, in any event not later than 31 March 2004.



British Energy or Exelon may terminate the agreement if the disposal has not
been completed by 10 April 2004, but this right to terminate will be deferred
for a further six months provided completion has not occurred simply because
regulatory approvals are still awaited, so long as reasonable efforts are still
being made to obtain these outstanding approvals.



The value of net assets of BEUSH which are the subject of the transaction was
recorded as GBP119m translated at the balance sheet exchange rate of $1.66 :
GBP1.00.





8.                CREDITORS AND PROVISIONS


                                                                                             Other
                                                                                         creditors
                                              Nuclear                    Deferred              and
                                          Liabilities        Debt             tax       provisions       Total
                                                 GBPm        GBPm            GBPm             GBPm        GBPm
                                                                                            

Creditors:
  Amounts falling due within one year             463         270               -              660       1,393
  Amounts falling due after more than
  one year                                      1,903         710               -                -       2,613
Provisions for liabilities and charges          1,731           -               -               45       1,776
As at 30 September 2003                         4,097         980               -              705       5,782
As at 30 September 2002                         3,828       1,050             458              873       6,209
As at 31 March 2003                             3,937         883               -              740       5,560




Nuclear liabilities include accruals for AGR fuel services relating to spent AGR
fuel are based on the terms of contracts with BNFL (dated 30 March 1995 and 3
June 1997), most of which include fixed prices subject to indexation, or the
Group's estimates where no contracts exist.  Provisions for services relating to
the disposal of nuclear waste and the storage and disposal of PWR spent fuel are
based on cost estimates derived from the latest technical assessments.  The
costs of decommissioning the power stations have been estimated on the basis of
technical assessments of the processes and methods likely to be used for
decommissioning under the current regulatory regime.  The estimates are designed
to reflect the costs of making the sites of the power stations available for
alternative use in accordance with the Group's decommissioning strategy.



8.                CREDITORS AND PROVISIONS (continued)



Other creditors include GBP316m in respect of claims relating to onerous trading
contracts.  These contracts are pre-NETA electricity trading contracts with
Enron, TPL, and Total.  The Enron and Total contracts were terminated during the
year ended March 2003, which gave rise to claims for certain amounts which have
become payable.  Interest is payable and being paid on standstill balances at a
rate of 6%, other than for the bonds and the amounts due to the Eggborough banks
which continue under their original terms.  These accounts reflect the claim
amounts which have been agreed in principle with Enron, TPL and Total for the
purposes of the Proposed Restructuring of the Group.



The analysis of the maturity of borrowings has been prepared based on the dates
when the borrowings mature under the existing contractual arrangements.
However, the standstill arrangements which have been put in place have the
effect of deferring the payments of certain amounts due until the Bonds and
Eggborough project finance loan are replaced as part of the restructuring of the
Group or earlier termination of the standstill.  The maturity profile of
borrowings is likely to change upon completion of the restructuring.



Included in provisions  is an interest  rate swaps  provision in respect of swap
contracts  which were put in place to hedge  interest  rate risk.  The Directors
have  reviewed  the  necessity  for these swaps in the context of the  financial
restructuring  of the  Group  and have  concluded  that the  swaps are no longer
effective as hedges.  A provision of GBP56m was created at 31 March 2003 and has
been  reduced to GBP41m at 30  September  2003  through  utilisations  of GBP6m,
accruals movement of GBP6m and revaluation of GBP3m.





9.                RECONCILIATION OF OPERATING CASH FLOW


                                6 months
                                   ended
                                30 Sep 03
                                                 6 months ended 30 Sep 02              Year ended 31 Mar 03
                                                               Dis-                                Dis-
                                   Total     Continued    continued      Total    Continued   continued     Total
                                    GBPm          GBPm         GBPm       GBPm         GBPm        GBPm      GBPm
                                                                                         

Operating (loss)/profit
including exceptional items         (33)         (195)           38      (157)      (3,899)          97   (3,802)
Exceptional items                     24           131            -        131        3,906           -     3,906
Operating (loss)/profit
excluding exceptional items          (9)          (64)           38       (26)            7          97       104
Depreciation                          25           136            7        143          274          13       287
Nuclear liabilities charged
to operating costs                    63            57            -         57          105           -       105
Nuclear liabilities                 (19)          (68)            -       (68)        (115)           -     (115)
discharged
Movements in other provisions        (2)          (31)            -       (31)         (45)           -      (45)
Regular contributions to the
decommissioning fund                 (9)           (9)            -        (9)         (18)           -      (18)
(Increase)/decrease in
working capital excluding
exceptional items                   (75)             3            7         10           36        (18)        18
Net cash (outflow)/inflow
from operating activities           (26)            24           52         76          244          92       336
Payments to acquire tangible
fixed assets                           -          (56)         (91)      (147)        (112)       (170)     (282)
Net cash (outflow)/inflow
from operating activities net
of capital expenditure              (26)          (32)         (39)       (71)          132        (78)        54






Operating  cash  flows for the six months  ended 30  September  2003  include an
outflow of GBP19m (30 September 2002: nil; 31 March 2003:  GBP30m) which relates
to  advisory  fees and other costs  associated  with  restructuring  the Group's
activities.





10.                RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT


                                                                                                           GBPm
                                                                                                         

Increase in debt in the period                                                                             (97)
Decrease in cash                                                                                           (43)
Increase in liquid resources                                                                                 69
Increase in net debt                                                                                       (71)
Net debt at 1 April 2003                                                                                  (550)
Net debt at 30 September 2003                                                                             (621)






11.                COLLATERAL



Investments in liquid funds at 30 September  2003 include  GBP315m of cash which
has  been   deposited  in  collateral   bank  accounts  for  trading   purposes.
Availability  of this cash is,  therefore,  restricted  over the  periods of the
collateralised positions.



Notes to the Accounts

For the six months ended 30 September 2003 (unaudited)



12.                CONTINGENT ASSETS



On 16 May 2003 the Company announced that it had exchanged the last of the suite
of contracts covering front-end and back-end fuel services required to give
effect to the non-binding heads of terms entered into with BNFL on 28 November
2002.  The front-end contracts became effective on 1 April 2003 but may be
terminated if the proposed restructuring is not completed.  The back-end
contracts are conditional on completion of the restructuring but payments are
being made as if the new back-end contracts had become effective on 1 April
2003.  The financial statements for the period to 30 September 2003 have been
drawn up on the basis of the previous BNFL contracts in respect of back end fuel
contracts, pending satisfaction of the restructuring conditions set out in the
new contracts, thereby creating a contingent asset of GBP220m (inclusive of
principal amounts accrued at 31 March 2003) which will be recognised upon
completion of the proposed restructuring.



On 14 February 2003 the Company announced that it had completed the disposal of
its 82.4% interest in Bruce Power in Canada to a consortium of three parties.
In addition to the consideration payable by the consortium under the master
purchase agreement, up to a further C$100m was payable to British Energy
contingent upon the restart of two of the Bruce A units.  C$50m would have been
released to British Energy had the first unit restarted by 15 June 2003 and an
additional C$50m would have been released to British Energy had the second unit
restarted by 1 August 2003.  C$5m is deducted from the C$50m payable in respect
of each unit for its failure to restart by the scheduled restart date or by the
first day of each successive calendar month following the scheduled restart
date.  At 30 September 2003 these units had not restarted therefore the Group
has not recognised any amount in respect of cash retentions on its Balance Sheet
at 30 September 2003 because of uncertainties regarding their realisation, and
there is likely to be a significant reduction in the aggregate amount payable to
British Energy.



13.                CONTINGENT LIABILITIES



These accounts are drawn up on a going concern basis, the basis of which is
explained more fully in note 1 to these accounts.  This note describes the
contingent liabilities which are applicable to the Group and the Company.



The Group has been provided with the Credit Facility by the Secretary of State.
As at 30 September 2003, the Group had drawings of GBP97m under the financing
facility, all of which had been deposited as collateral in support of the
Group's trading and operational requirements.  Also at this date, the Group had
cash and liquid investments of GBP359m of which GBP315m had been deposited as
collateral.



The following security has been granted for obligations under the Credit
Facility made available by the Secretary of State:



-         An all monies debenture creating fixed security (by way of assignment
and/or fixed charge) over certain intra-group receivables, and special accounts
and a floating charge between the Secretary of State and certain Group
companies.

-         Fixed charges in relation to the UK nuclear power stations.

-         Pledge and mortgage of shares in certain Group subsidiaries in favour
of the Secretary of State.

-         Pledge agreement between British Energy US Holdings Inc and the
Secretary of State over certain membership interests in British Energy US
Investments LLC and certain limited partnership interests in British Energy LP.



Amounts owing by EPL to the Eggborough bank syndicate are not guaranteed by the
Company.  However, the Company guarantees the payment of amounts by BEPET to
EPL, calculated to cover EPL's borrowing and operating costs.  In addition the
Company also provides a subordinated loan facility to EPL.



On 1 October 2003, the Company announced that it had entered into a Creditor
Restructuring Agreement with certain significant creditors (including the
Eggborough bank syndicate) and BNFL relating to the standstill, recognition and
compromise of their claims.  However, while the Directors believe that the
amounts of the agreed claims currently reflect the amounts legally claimable, in
the event of restructuring not being completed different amounts may be
calculated as being claimable.



On 25 September 2002 the Nuclear Generation Decommissioning Fund Limited (the '
Fund') served a default notice relating to the solvency of the Company, British
Energy Generation Limited and British Energy Generation (UK) Limited.  Unless
the default is cured to the satisfaction of the Fund, or waived, the Fund has
the right to require accelerated payment of all of the contributions due to the
Fund prior to the next quinquennial review in Autumn 2005.  Annual payments are
in the region of GBP18m.  The Fund has agreed not to take enforcement action
without further notice while the Group progresses satisfactorily towards
achieving restructuring.  If the conditions to restructuring are satisfied, the
Fund and others will enter into a Deed of Termination whereby the Fund agrees
that it shall take no action to enforce its rights pursuant to the default
notice.



The Group has given certain indemnities and guarantees in respect of the
disposal of its investment in Bruce Power.  The Group does not currently
anticipate any losses will arise in connection with them.



The Group is involved in a number of other claims and disputes arising in the
normal course of business which are not expected to have a material effect on
the Group's financial position.



The Company has given certain indemnities and guarantees in respect of its
subsidiary undertakings.  No losses are anticipated to arise under these
indemnities and guarantees, provided relevant subsidiary undertakings continue
as going concerns.



14.          POST BALANCE SHEET EVENTS



On 10 October 2003 British Energy entered into a legally binding agreement with
Exelon to dispose of its entire 50% interest in AmerGen.  See Note 7(iii) for
full details.



On 27 November 2003 British Energy announced that it had agreed with the
Secretary of State a temporary increase in the amount of the Credit Facility
from GBP200m to GBP275m.  The temporary increase in the Credit Facility will be
available until the earlier of the receipt of the proceeds from the disposal of
the Group's 50% interest in AmerGen and 22 February 2004.  As at 12 December
2003 the Group had drawings under the Credit Facility amounting to GBP94m.



In October 2003 there were unplanned outages at Sizewell B and Heysham 1 nuclear
power stations.  Sizewell B returned to service on 15 November 2003 and Heysham
1 is estimated to return to service in the first half of February 2004.



Investments  in liquid funds at 12 December  2003 include  GBP359m of cash which
has been  deposited  in  collateral  bank  accounts  for trading  and  operating
purposes.  Availability of this cash is, therefore,  restricted over the periods
of the collateralised positions.





INDEPENDENT REVIEW REPORT TO BRITISH ENERGY PLC



Introduction



We have been instructed by the Company to review the financial information which
comprises the profit and loss account, balance sheet, cash flow statement,
statement of total recognised gains and losses and related notes.  We have read
the other information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.



Directors' Responsibilities



The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors.  The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.



Review Work Performed



We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom.  A review
consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and, therefore,
provides a lower level of assurance than an audit.  Accordingly we do not
express an audit opinion on the financial information.  This report has been
prepared for and only for the Company for the purpose of the Listing Rules of
the Financial Services Authority and for no other purpose.  We do not, in
producing this report, accept or assume responsibility for any other purpose or
to any other person to whom this report is shown or in to whose hands it may
come save where expressly agreed by our prior consent in writing.



Fundamental uncertainty - going concern



In arriving at our review conclusion, we have considered the adequacy of the
disclosures made in note 1 concerning the preparation of the interim financial
information on the going concern basis.  The validity of this assumption depends
on the continuation of the standstill arrangements with certain creditors and
the financial assistance from the Secretary of State under the Credit Facility
and no material deterioration in the Group's cash flow performance or outlook,
the completion of the AmerGen disposal without any material downward adjustment
to the purchase consideration, fulfilment of the conditions of the Proposed
Restructuring and achievement of the Group's cash generation initiatives, in
each case within the time scales envisaged or required.  In view of the
significance of the uncertainty concerning these matters we consider that it
should be drawn to your attention but our conclusion is not qualified in this
respect.





Review conclusion



On the basis of our review, we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2003.






PricewaterhouseCoopers LLP

Chartered Accountants

Edinburgh

16 December 2003







Notes:



(a)           The maintenance and integrity of the British Energy plc website is
the responsibility of the Directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred to the interim report
since it was initially presented on the website.



(b)                Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ from legislation in other
jurisdictions.











                               CERTIFICATION





I, Mike Alexander, Chief Executive Officer of British Energy plc, certify that:



1.                  I have reviewed this report of British Energy plc, (the
"registrant");



2.                  Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
report;



3.                  Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;



4.                  The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have;



(a)                designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;



(b)                evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures as of the end of the
period covered by this report; and



(c)                disclosed in this report any change in the registrants
internal control over financial reporting that occurred during the registrants
most recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrants internal control over financial reporting.



5.                  The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function);



(a)                all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarise and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and



(b)                any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
controls.








Date: 16 December 2003              Name:                Mike Alexander
                                    Title:               Chief Executive Officer







                             CERTIFICATION





I, Martin Gatto, Interim Finance Director of British Energy plc, certify that:



1.                  I have reviewed this report of British Energy plc, (the
"registrant");



2.                  Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
report;



3.                  Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;



4.                  The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have;



(d)                designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;



(e)                evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures as of the end of the
period covered by this report; and



(f)                 disclosed in this report any change in the registrants
internal control over financial reporting that occurred during the registrants
most recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrants internal control over financial reporting;



5.                  The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function);



(c)                all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarise and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and



(d)                any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
controls.




Date: 16 December 2003                  Name         Martin Gatto
                                        Title:       Interim Finance Director
                                                     (appointed 8 December 2003)







                           CERTIFICATION PURSUANT TO

                             18 U.S.C.SECTION 1350

                             AS ADOPTED PURSUANT TO

                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002







In connection with the Report of British Energy plc for the period ending 30
September 2003 as filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, Mike Alexander, Chief Executive Officer, certify,
pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002, that:



(1)    The Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and



(2)    The information contained in the Report fairly presents, in all material
respects, the financial condition and results of British Energy plc.




Date: 16 December 2003              Name:               Mike Alexander
                                    Title:              Chief Executive Officer







                           CERTIFICATION PURSUANT TO

                             18 U.S.C.SECTION 1350

                             AS ADOPTED PURSUANT TO

                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002







In connection with the Report of British Energy plc for the period ending 30
September 2003 as filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, Martin Gatto, Interim Finance Director, certify,
pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002, that:



(1)    The Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and



(2)    The information contained in the Report fairly presents, in all material
respects, the financial condition and results of British Energy plc.




Date: 16 December 2003                  Name         Martin Gatto
                                        Title:       Interim Finance Director
                                                     (appointed 8 December 2003)




                                   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:  December 17 2003                    BRITISH ENERGY PLC

                                           By:____Paul Heward____

                                           Name:  Paul Heward
                                           Title: Director - Investor Relations