EASTERN Group, owner of Eastern Electricity, has outsourced the finance and management of its 2,900-strong fleet. The Group has awarded a £25 million contract to PHH Vehicle Management Services to supply all its vehicles and provide maintenance and accident management for its fleet of 900 cars.

A management buyout by the department which ran the vehicles in Eastern Group has created a new firm called CALK, which will maintain and licence the commercial vehicle fleet. It is run by former members of the department, including John Curran, who is the new firm's managing director.

Service level agreements, which sit outside the contract and set clear performance indicators, will be reviewed at regular monthly meetings between PHH and Eastern Electricity's project team.