(1) For the purposes of this Part, a relevant merger situation involves an energy network merger if two or more of the enterprises that cease to be distinct are energy network enterprises of the same type.

(2) For the purposes of this Part, the types of "energy network enterprise" are - (a) an enterprise holding a licence under section 7 of the Gas Act 1986 (gas transporter); (b) an enterprise holding a licence under section 6(1)(b) of the Electricity Act 1989 (transmission of electricity), except as mentioned in subsection (3); (c) an enterprise holding a licence under section 6(1)(c) of the Electricity Act 1989 (distribution of electricity), except as mentioned in subsection (3).

(3) An enterprise holding a licence under section 6(1)(b) or (c) of the Electricity Act 1989 is not an energy network enterprise if -

(a) the licence was granted following a tender exercise, and

(b) either -