Fleet200: Public sector's checkered progress in pursuit of lower emissions

The following article was published in the September 24 issue of Fleet News. Read the full article.

Twenty-five public sector organisations feature in this year’s Fleet200, collectively operating 33,265 cars and vans.

The biggest public sector fleet is Defra Group Fleet Services, which consists of the Environment Agency as well as smaller agencies within the Department for Environment, Food and Rural Affairs. It operates 5,900 vehicles (4,300 cars, 1,600 vans). At the other end of the scale is West Suffolk Council with 107 vehicles (27 cars, 80 vans). The average fleet size for public sector organisations this year is 1,331 vehicles.

Outright purchase continues to be the most popular funding method for both cars and vans as public sector organisations typically combine their buying power through framework agreements and joint tenders. 

The Covid-19 pandemic has played havoc with some public sector tender processes this year, notably the national framework agreement for police vehicles, which was due to close at the end of March but had to be put on hold as manufacturers were unable to respond to the tender during lockdown.

The process is now due to restart shortly.

However, it has meant that some police fleets have had to run their vehicles for longer than planned, without any reduction in mileage as they have remained busy throughout the pandemic. 

Police vehicles already clock up some of the highest mileages in the Fleet200. All of the police fleets who responded to this year’s survey replace their cars after more than 100,000 miles, with Devon & Cornwall Police and Dorset Police (the seventh largest public sector fleet with 1,500 vehicles) the highest at 150,000 miles. 

Devon & Cornwall Police and Dorset Police also keep vehicles the longest with an average replacement cycle of 120 months (10 years) for both cars and vans. 

Some police forces replace their vehicles much sooner, however. Police Scotland, the third largest public sector organisation in this year’s Fleet200 with 3,581 cars and vans, replaces its vehicles after 48 months (four years) on average.  

The London Borough of Southwark, which sits at number 16 in this year’s public sector fleets with 670 cars and vans, has the shortest car replacement cycle of the public sector fleets in this year’s Fleet200 at 36 months (three years) and 30,000 miles, with drivers typically doing 10,000 miles per annum, although this does vary dependent on individual use. Tracey Dean, fleet service manager, explains the short car cycle is linked to the council’s funding method as it uses contract hire rather than outright purchase for its entire fleet and its aim is to have newer, cleaner vehicles. 

Its vans are replaced at 60 months (five years) and 60,000 miles with the latter being the lowest average mileage for public sector fleets in this year’s Fleet200. 

The shortest age for van replacement for public sector fleets is 48 months, with a number of fleets choosing this cycle.

The average for public sector fleets in this year’s Fleet200 is 71 months (almost six years), while the average mileage for van replacement is 105,000 miles, and the average annual business mileage is 16,001 miles (or 94,673 over the full term). 

For cars, the average replacement cycle for public sector fleets in this year’s Fleet200 is 51 months (a little more than four years), 86,000 miles with 14,172 business miles a year (60,231 over the full term).

Public sector organisations have to weigh up the cost of replacing their vehicles sooner with the benefit of having the latest technology and lower emissions from newer vehicles. 

The pressure to reduce emissions has always been felt keenest among public sector fleets as they are expected to lead by example, with average CO2 emissions targets and now targets set for electric vehicles (EVs). 

Central Government departments have to electrify 25% of their fleets by 2022.

Defra Group Fleet Services has already exceeded this target on its car fleet. In fact, pure EVs, plug-in hybrids (PHEVs) and hybrids account for 50% of its car fleet (10%, 15% and 25% respectively). Its average CO2 emissions for cars sits at 91g/km, while the average CO2 for its car orders is 80g/km.

On vans, 15% of its fleet has been electrified (5% pure EV and 10% PHEV). 

That is the highest percentage of pure electric vans operated by public sector fleets in this year’s Fleet200.

Gateshead Council, which sits at number 20 in this year’s public sector fleets with 400 cars and vans is the only other public sector fleet to achieve that percentage. 

On the car side, Gateshead has the highest percentage of pure EVs of the public sector fleets with 25% – reflective of the fact that fleet manager Graham Telfer, a member of the Fleet News Hall of Fame, has long been a pioneer of EVs.

Overall, average CO2 emissions for public sector car fleets in this year’s Fleet200 is 106g/km, with orders standing at 96g/km. 

The public sector car fleet with the lowest average CO2 emissions is Hampshire County Council/Hampshire Transport Management at 84g/km (followed by Defra Group Fleet Services), while the highest is bluelight operator Chiltern Transport Consortium at 121g/km.

Shifting to EVs is not necessarily problem-free and several public sector fleets highlight the move as a key challenge (alongside the Covid-19 pandemic) in this year’s survey. 

Police fleets are particularly concerned given the specialist operational nature of their work and highlight the cost and infrastructure challenges they will face. 

While the public charging infrastructure network is growing, public sector fleet operators still tend to need to install workplace charging.

Procurement of chargers should now be made easier for some by the Crown Commercial Service (CCS) introducing a vehicle-charging infrastructure solutions agreement earlier this year. 

This gives public sector fleets which use CCS access to a range of charging-related services including consultancy and feasibility, groundworks, civil engineering and construction, hardware, software and back office solutions, and full end-to-end service.

However, introducing EVs at older buildings or when the buildings are leased can still be problematic. 

Public sector fleets also highlight the supply of EVs as a challenge. Before the Covid-19 pandemic there were long lead teams for EVs and some fleets are still reporting issues. 

Dale Eynon, director at Defra Fleet Services, says the organisation is not able to be strategic about its EV procurement at the moment. It buys whichever EVs it can get hold of, provided the price is right. 

It has benefitted from others cancelling their EVs orders as companies re-evaluate their vehicle requirements in light of the pandemic.

“That is putting EVs back in the market, in some cases, on a first come, first served, basis,” he says. 

However, supply is improving with most of the major manufacturers planning to deliver EVs before the end of the financial year, or the end of the calendar year in some cases. 

“I think the situation will improve as we go into 2021,” Eynon says.

Public sector fleets have also faced the challenge of sourcing additional vehicles during the Covid-19 pandemic due to issues such as restrictions on van occupancy and to meet additional demand for services. 

Gateshead Council, for instance, had to have an additional 40 vans on hire from its provider Northgate Vehicle Hire. 

London Ambulance Service (LAS), meanwhile, had to scale up its fleet with an additional 176 ambulances within just three weeks to meet demand.

Despite the challenges faced, Justin Wand, director – strategic assets and property at LAS, feels able to sound a note of positivity about the pandemic.

“It’s going to push us to be more innovative with how we deliver services in the future,” he says.