The head of the Swiss post office, Ulrich Gygi, has dismissed allegations of overcharging customers for postage stamps.

Gygi said he expected Swiss Post, which is fully owned by the government, to make a record profit of more than SFr900 million ($812 million) in 2007.

He said the company was among the top six in western Europe when it comes to sending letters for a good price.

He was responding to a statement by the postal regulator who accused Swiss Post of overcharging for stamps by 300 million every year.

Gygi said the favourable economic situation had boosted the express and parcel services last year. He added that postal deliveries and Swiss Post's financial services were a key element of its business activities.

Swiss Post has a monopoly for sending letters of up to 100 grams until 2011 and it has agreed to leave prices unchanged until March 2009.

The government is to decide in the near future about the speed and next steps in the complete liberalisation of the Swiss postal market.

The company has a staff of about 33,000 and posted a SFr837 million profit in 2006.

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