Triple Point and MT Finance agree £30m corporate revolving credit facility
4 July 23
4 July 23
The green revolution...helping Councils go electric with non-bank leasing
Electric vehicles (EVs) are considered a key technology to decarbonise road transport, the highest emitting sector of the UK economy today. If growth from EV sales is sustained and the rollout of charging infrastructure improves, this sector is on track for net zero emissions by 2050.
But, of course, there are still bumps in the road. Decarbonising the sector requires all types of vehicles to go electric, from cars and vans, through to refuse collection vehicles (RCVs). It also involves the capacity of regional bodies such as local Councils to deliver on this goal. The challenge is the immense financial burden on local governments facing rampant inflationary pressures. To support the drive for greener roads, non-bank lenders like Triple Point are ready to step in with tailored solutions and flexible leasing plans to allow Councils to spread the cost more effectively.
In late 2022 Triple Point arranged the finance of Torfaen County Borough Council’s first two electric RCVs. These vehicles replaced diesel RCVs, which boast among the worst fuel economy of all major vehicle categories. This move marks the first step in transitioning the Council’s fleet of waste collection vehicles and is one of the many ways that the Council is aiming to become net zero by 2030.
How the story unfolded
A trial of an electric bin lorry was carried out in August 2021, and clearly, Torfaen Council liked what they experienced as they ordered two of their own electric RCVs. The Council selected Dennis Eagle eCollect Vehicles with Olympus bodies, an emissions-free 100% electric RCV. The benefits of these vehicles include quieter operation, less operational costs, and no air pollution. The Council have particularly expressed their gratitude to the Welsh government for supporting the acquisition of these two vehicles with a government grant.
Once the vehicles were delivered and paid for, the Council undertook a tender process to arrange a sale and leaseback contract so the costs could be spread over a five-year lease term, easing pressure on the Council’s budgets. The tender process ensures the Council can evaluate bids from several banks and leasing companies and select the most competitive option.
Triple Point was keen to support the Council in its transition to electric vehicles and worked with an electric vehicle specialist and valuation experts to estimate what the residual value of the RCVs would be at the end of a five-year lease term. The Triple Point team were delighted to be awarded the lease contract based on our competitive pricing and long-standing reputation. Triple Point first started working with Torfaen County Borough Council in 2009 and since then has arranged leasing for a wide range of assets, including sweepers, tippers, a gully emptier, JCB’s and a Ford pick-up vehicle.
To celebrate this milestone of transitioning to electric RCVs, the Council asked local primary school children to suggest names for each vehicle, with the winning names to be printed on the doors of the new RCVs. The successful submissions are BERT (Best Electric Refuse Truck), created by Year 2 pupil, from Ponthir Church in Wales Primary School, and TREVOR (Torfaen Refuse Electric Vehicle On Route), created by a pupil at Henllys Church In Wales School.
Triple Point Public Sector Asset Finance
Our specialist NHS Trust, Local Authority and Education asset finance team bring a deep knowledge of public sector tendering, budgeting and accounting requirements, consistently providing competitive finance and operating leases for a wide range of assets.
Caroline Davis, Head of Public Sector Asset Finance: “Triple Point is proud to support Torfaen County Borough Council in its drive to reduce emissions on the streets of Torfaen. Enabling public sector organisations to acquire assets that enhance the lives of people, and the communities in which they live is at the very heart of our finance offering.”