FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
May 05, 2004
BRITISH ENERGY PLC
(Registrant's name)
3 Redwood Crescent
Peel Park
East Kilbride G74 5PR
Scotland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
Exhibit Index
The following document (bearing the exhibit number listed below) is furnished
herewith and is made a part of this Report pursuant to the General Instructions
for Form 6-K:
Exhibit Description
No. 1 RNS Announcement, re: 'Response to Govt Statement'
dated 05 May 2004
5 May 2004
BRITISH ENERGY plc
SECRETARY OF STATE FOR TRADE AND INDUSTRY ANNOUNCEMENT REGARDING SPECIAL SHARES
IN BRITISH ENERGY plc ('BRITISH ENERGY') AND COMMENT ON STATUS OF RESTRUCTURING
Special Shares
The Secretary of State for Trade and Industry ("Secretary of State") made an
announcement today regarding the special shares currently held by the UK
Government in the British Energy Group and which will continue to be held in the
restructured British Energy Group.
The Secretary of State has decided to retain 2 key provisions of the special
shares relating to the British Energy group of companies as follows:
1. The requirement for any investor to obtain the consent of
the UK Government for any shareholding in excess of 15% of British Energy's
issued ordinary shares.
2. The requirement for British Energy to obtain the consent of the UK
Government for the disposal of any of its nuclear power stations.
However, the Secretary of State has announced that both of these provisions will
be amended to ensure that UK Government consent can only be refused on the
grounds of national security.
Other than these provisions, the UK Government will be giving up all its other
rights under the special shares.
In addition, the Secretary of State will be retaining its special share in the
Nuclear Generation
Decommissioning Fund (NGDF), and carry it forward into the Nuclear Liabilities
Fund
(NLF) if British Energy's restructuring is successful.
Status of Restructuring
British Energy exchanged a formal agreement with its major creditors on the
restructuring in October 2003. However, it must be recognised that the
restructuring remains subject to a large number of significant uncertainties and
important conditions including receipt by the Secretary of State for Trade and
Industry (the '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 this notification around summer 2004.
Furthermore, the Secretary of State is entitled not to proceed with the
restructuring if, in her opinion, the Group will not be viable in all reasonably
forseeable conditions without access to additional financing beyond that which
is committed and will continue to be available when required.
If, for any reason, the restructuring cannot proceed, the Board may have to seek
the protection of insolvency proceedings. In this case the distribution to
unsecured creditors may represent only a small fraction of their unsecured
liabilities and it is highly unlikely that there will be any return to
shareholders. Even if the restructuring is implemented, the return, if any, to
existing shareholders will represent a very significant dilution of their
existing interests.
Contacts:
Andrew Dowler Financial Dynamics, Media 020 7831 3113
Paul Heward British Energy, Investor Relations 01355 262 201
Website: www.british-energy.com
Notes to Editors:
a) The following special shares were created at the time of the
privatisation of British Energy plc in 1996:-
1. The Secretary of State for Scotland, and the Secretary of
State for Trade and Industry jointly hold a special share in British Energy plc.
2. The Secretary of State for Trade and Industry holds a
special share in British Energy Generation Limited, which is the English
operating subsidiary of British Energy plc.
3. The Secretary of State for Scotland holds a special share
in British Energy Generation (UK) Limited, which is the Scottish operating
subsidiary of British Energy plc.
4. The Secretary of State for Trade and Industry holds a
special share in the Nuclear Generation Decommissioning Fund Ltd (NGDF), which
is due to be subsumed into the new nuclear liabilities fund (NLF), which is
being created as part of the restructuring of British Energy plc.
b) The Government's decisions have been made, inter alia, having regard
to the European Court of Justice (ECJ) judgements on special shares (including
BAA) on 13th May 2003, and the restructuring of British Energy.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: May 05, 2004 BRITISH ENERGY PLC
By:____Paul Heward____
Name: Paul Heward
Title: Director - Investor Relations