The company, responding to a week of criticism, yesterday issued a statement offering revised discounts to affected parties representing half the savings originally offered to them.
Mercury general manager James Munro said the company would make a loss on the deal, "but we feel it is important to make a significant compensatory offer to them".
Mercury representatives cold-called 400 Dunedin business owners last month, offering discounts - in one case 30%, saving the business owner $16,000 a year - if they signed up over the phone.
Those who agreed had their verbal contracts recorded, and received written confirmation, but days later were informed by Mercury representatives the deal was being withdrawn.
The dramatic discounts were meant for Dannevirke, and did not take account of Dunedin line charges, businesses were told.
Mercury's efforts to withdraw the deal were revealed by the Otago Daily Times last week, along with the decision by rival Genesis Energy to honour offers to 16 residential customers after making a similar mistake.
Most business owners contacted yesterday said they were unlikely to accept Mercury's latest deal, saying the company should honour its original offer.
A meeting of business owners was planned for next Tuesday. Up to 100 people, including Otago Chamber of Commerce chief executive John Christie and Mercury new retail manager Luke Blincoe, were expected to attend.
Ironic Cafe and Bar owner Steve Wilson, who was originally offered a 30% discount, saving $3000 a year, said he was "absolutely not" prepared to accept the offer.
"There are some businessmen in Dunedin who are saying it was a contract ... and you have got to front up."
Kaan's Catering Supplies owner Lindsay Kaan, originally offered a 30% discount, saving $16,000, also did not believe the company's offer went far enough.
"I think there's still some negotiation to do, really."
Otago Cleaning Supplies owner Peter de Clifford, originally offered a 45% discount, saving $1200, said he was seeking more detail from Mercury before deciding whether to accept.
"Probably the original offer was too good to be true, so I suppose if we end up getting half the original offer that shouldn't be too bad."
Mr Christie said he would discuss Mercury's offer, and a range of possible responses, with businesses at next week's meeting.
He had sought a legal opinion on the strength of Mercury's original contracts if tested.
