Spain launches inquiry after dams drained for profit during drought

Firm used water to generate cheap electricity while price to customers in grip of heatwave is at record high

The Spanish government has launched an inquiry after it emerged that a power company drained two reservoirs during a heatwave and drought in order to profit from exceptionally high electricity prices.

Iberdrola, the country's second biggest producer, drained the dams in Zamora and Caceres provinces in western Spain over a period of a few weeks to produce cheap hydroelectricity while the price to consumers is at a record high.