That is correct!
It was a Python sketch called "Rock Notes" in which a journalist (Eric Idle) delivers a nonsensical music news report:
"Rex Stardust, lead electric triangle with Toad the Wet Sprocket, has had to have an elbow removed following their recent successful worldwide tour of Finland. Flamboyant ambidextrous Rex apparently fell off the back of a motorcycle. 'Fell off the back of a motorcyclist, most likely,' quipped ace drummer Jumbo McClooney upon hearing of the accident. Plans are now afoot for a major tour of Iceland."
Eric Idle reflected on the band's name in a 1999 performance:
"I once wrote a sketch about rock musicians, and I was trying to think of a name that would be so silly nobody would ever use it, or dream it could ever be used. So I wrote the words 'Toad the Wet Sprocket.' And a few years later, I was driving along the freeway in LA, and a song came on the radio, and the DJ said, 'that was by Toad the Wet Sprocket,' and I nearly drove off the freeway!"
I always liked Eric's reference to playing "lead electric triangle" (which is, of course, different than rhythm electric triangle).
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