The facility, which has received billions of pounds in subsidies to date, generates about 5% of the UK's electricity.
However, the Drax plant's emissions are unabated, making the station the single largest CO2 emitter in the country.
According to the government, the arrangement would see the site be utilised less.
The agreement runs until March 2031.
Over the weekend, Drax was yet again accused of failing to properly disclose burning primary forest wood.
A BBC report detailed a further year of misreporting that has not been looked at by the regulator Ofgem.
Records show that Drax still sources whole trees from primary forests that are felled by other companies in the Canadian province of British Columbia.
This is despite the company stating that it will "avoid damage or disturbance to high carbon forests".
Drax failed to report this activity.
In a statement an Ofgem spokesperson said: "We thank the BBC for sharing this information which relates to the same issue that was identified in our investigation into Drax."
They added that Ofgem is making Drax "conduct a full independent, external audit of its global supply chain profiling data to satisfy us appropriate processes and controls are in place for the future" and added: "If any additional evidence comes to light following the audit, we will investigate again."
According to the BBC, Drax did not deny misreporting its sustainability data but said it is "focused on implementing the lessons learned".
