Moneysupermarket shares slide amid dearth of energy bargains

Moneysupermarket's twerking businessman advert was complained about in 2016

Shares in Moneysupermarket plunged on Thursday after the price comparison site warned a lack of "blockbuster" energy deals would hit its full-year profits. 

The company saw its shares tumble as much as 16pc after its results for the six months to June were rattled by a decision from big energy providers not to to try and entice huge swathes of new customers with bargains - resulting in fewer people switching energy providers.

This brought revenues in the FTSE 250 company's home services division, which compares gas and electricity deals, down by a third, and prompted a warning that profits this year would be lower than expected. 

Chief executive Mark Lewis, who only joined the FTSE 250 firm in April after three years at John Lewis, said that while insurance switching soared during the period "the energy market continues to evolve". 

"The lack of blockbuster energy deals from providers meant we didn't collectively switch as many people as last year," he said, adding that the focus now is on "improving our everyday energy switching" with a particular focus on mobile.

He said his biggest concern for the year ahead is that too many people "miss out on chunky savings on their household bills and financial products because they don't switch".

"If we can't get the message to them, we will have missed a big opportunity," Mr Lewis said. "Last year was a bumper year for energy collective switches and this year is not. But two thirds of households in the UK are still on standard tariffs. This means they can each save nearly £300 by switching. The opportunity to help people is very big."  

An 18pc jump in insurance switching during the period meant that first-half revenues at the company, known for its controversial dance-off adverts, increased by 5pc on last year to £165.3m.

Energy companies have taken advantage of falling wholesale energy prices in recent years by offering deals, but rising commodity prices and a rocky political climate means new bargains have been slow to emerge.