The company, which produces a tenth of the country's electricity, claims that its profits are still falling.
"Consumers have reacted to prices and we have seen demand falls of between five and six per cent," said chief executive of Drax Dorothy Thompson.
"That has led to a narrowing in our margins," she added.
Wholesale electricity prices in the UK have fallen by half in the last year and the price of coal has collapsed.
Last month, Thompson claimed that EDF's £12.5 billion takeover of British Energy threatens to drive up prices for consumers and undermine competition.
She told the Times that the move will dampen investment in new power stations in the UK.
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