Never thought about it too much, but I always took it to mean his alter ego or stage persona. - You maybe have a point though, in that it could have been Torch.
Was interested to read this comment from Fish about the track:
Fish: “We’d all banned powders from the farm and were doing well with our limited amounts of alcohol until John Arnison, our manager arrived for a night out with the boys. After the usual arguments and sorting out all our problems, both existent and non-existent, into the early hours of the morning I headed for bed and spent the rest of the night staring at the ceiling unable to sleep and considering my options. I wanted to go. I wanted a life. I was so tired of the touring and felt trapped by the machine we’d created. It was ‘That Time of the Night’, a lyric that still reads like my resignation statement.”