BGYA Brit Energy Csh

RNS No 6253r
BRITISH ENERGY PLC
18th July 1997



                             BRITISH ENERGY plc
                                      
                           AGM STATEMENT EXCERPTS
                                                                             

At British Energy's first AGM, held today in Edinburgh, the Chairman John
Robb, made the following remarks:

DIVIDEND

"The marked improvement in the financial performance of British Energy, has
enabled the Board to recommend a final dividend of 9.1 pence per share and I
shall be requesting approval for this payment later in the meeting.  This
final dividend, in addition to the 4.6 pence interim payment, brings the
total dividend for the year to that which was forecast in our prospectus,
that is to say 13.7 pence per share.

I would just mention that, as at yesterday's date, our share price had risen
by just short of 70% since flotation on 15 July 1996 which compares to a 25%
rise in the FTSE All Share index over the same period."

MANAGEMENT SUCCESSION

"At the end of June our Chief Executive, Bob Hawley, stepped down from the
Board.  With privatisation successfully behind us, your Board considered
carefully the age profile of the Board and the need to address succession to
key board positions to equip British Energy for the challenges ahead.

The issue of senior management succession is being addressed by the
recruitment of a new Chief Executive from either internal or external
sources.  In my and the Board's view, it is imperative that the person
appointed will be of an age whereby he or she can be in the position
throughout the period when key strategic and investment decisions will need
to be taken and implemented in order to secure the long term future of the
Company."

CURRENT TRADING

"Ladies and gentlemen, I would like to conclude my remarks by commenting
briefly on events and current trading covering the first quarter of the
1997/98 financial year.

We await the final wording of the Finance Bill in regard to British Energy's
position on the Windfall Tax.  Based on the Paymaster General's comments in
Parliament in early July and our discussions with the Treasury, we believe it
unlikely that we shall be liable for this tax.  Lower corporation tax rates
announced in the Budget will be offset by the removal of tax credits on
dividends which may mean higher contributions to our pension fund.  All in
all, therefore, the Budget has had a broadly neutral impact on the Company's
immediate prospects.

As far as the operating performance of the Company is concerned, I am
delighted that output from our eight power stations was 4.6% higher in the
April/June 1997 period compared with April/June 1996.  This trend will not,
however, continue for the whole of this year as seven statutory shutdowns are
currently planned this year, compared with four last year.

Pool prices are approximately at the same level as in the early part of last
year, but this remains a volatile issue which British Energy has no control
over as we do not set prices.   We, therefore, seek to manage this volatility
through hedging instruments such as contracts for differences and
arrangements such as the proposed alliance with Southern Electric.  Plans are
well in hand to reduce our costs per unit of electricity in order that we
remain competitive.  The agreement with BNFL for new service contracts will
help us in this regard.

Taking all these factors together, I am satisfied that British Energy is on
course to make further progress this year.  We face a challenging environment
but the operating performance of the Company over the last three months, as
well as the preceding year, enables me to give an optimistic summary of
current trading at this comparatively early stage of the year."


Enquiries:

Media               Doug McRoberts                0131 527 2020
Investor Relations  Paul Heward                   0131 527 2250


END

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