As energy costs continue to increase in the Benelux region, it’s important that residents look for ways to reduce their financial impact. (Courtesy photo)

Planning ahead for annual reconciliation

By Meredith Mulvihill, USAG Benelux Public Affairs

CHIEVRES AIR BASE, Belgium – For those living in the Benelux, annual utilities reconciliation is a normal part of life in Europe.

However, rising energy costs across the region have led to many residents receiving bills that are anything but typical.

“The reconciliations I’ve seen have doubled, if not tripled,” said Maija Winesberry, the financial readiness program manager and Army emergency relief officer for U.S. Army Garrison Benelux. “There is an individual who got their reconciliation…and now the energy company is asking them to pay €1,500 per month.”

Reconciliation (also sometimes called an annual settlement) is the process where residents work directly with their utility companies to finalize their utility costs for the year. Most European utility companies charge customers a flat monthly fee for utilities based on estimated energy consumption. After 12 months, the company uses meter readings to compare the estimated payments to the actual amount of energy used. If the estimate was too high the utility company will refund the excess money, and if it was too low the customer will have to pay the difference. Depending on how big the gap is, a new monthly rate may also be established during this process.

As energy costs continue to increase, it’s more important than ever that residents look for ways to reduce their financial impact.

In addition to actively seeking ways to conserve energy, Winesberry emphasized the importance of factoring the prices into residents’ overall budget.

“We’re seeing a need to really focus on, not just energy consumption, but how you are managing your finances,” said Winesberry.

According to Winesberry, that starts with residents tracking their expenses to better understand their current financial situation. This can range from using a money-tracking app, to monitoring monthly bank statements, to even keeping and reviewing physical receipts.

“Find a method of tracking that works for you,” Winesberry said. “You need to know where your money is going in order to…control where it is being spent.”

She explained that once residents have a handle on their current expenses, they can then budget in additional goals such as saving for utility price hikes.

“I’m always encouraging people to make goals,” Winesberry said, “because that means you have a marker for those dollars.”

In order to budget for reconciliation, Winesberry advised setting aside a set amount of money each month in the form of a savings account or myPay allotment.

Since utility costs differ from resident to resident, she recommends taking a home’s energy rating category, method of heating (oil, gas, etc.) and current utility bill into account when deciding how much to put aside.

“We know that each category is going to increase, but we don’t know what that amount looks like,” Winesberry said. “Planning for the unknown can be a little bit challenging…but if you do your best then you’ll be more prepared.”

If residents can’t afford to set aside an allotment, Winesberry first suggested looking into options in the local area for ways to save money. For example, local MWR libraries offer free audio books and other digital content that can take the place of monthly subscription services.

“Look at how much you’re spending for something,” Winesberry said, “and see if there’s a free option.”

For garrison employees with Commissary privileges, Winesberry also recommended comparing their grocery prices to those on the local economy.

“The Commissary is subsidized by the government,” Winesberry said, “so when you’re shopping there you’re basically paying at cost.”

The DoD also recently increased Commissary funding under its “Taking Care of Service Members and Families Initiative,” with a goal of reducing prices on most items by three to five percent.

For service members and retirees who may still be struggling, Winesberry said there are financial aid resources available through organizations such as Army Emergency Relief (AER).

“If you cannot pay your utilities, or rent, those are basic living needs,” Winesberry said. “(AER) can help support that.”

AER is a non-profit organization designed to promote readiness and help Soldiers and Family members in financial distress. According to Winesberry, they can support through zero interest loans, grants, or a combination of the two.

In addition to helping with basic living needs, AER can offer financial assistance for a variety of circumstances including emergency travel, home and automobile repairs, funeral expenses, child car seats, healthcare not covered by Tricare, and even some transition assistance programs and scholarship support.

Soldiers and Families looking for more information, or to apply for AER, are advised to reach out to Winesberry. To start the process, she said prospective applicants should bring in their Common Access Card, most recent Leave and Earnings Statement and any additional paperwork such as bills or estimated costs associated with their request.

While Winesberry’s job is primarily associated with AER, she can also help connect other DoD service members with their branch’s emergency relief options.

“I do support other branches,” Winesberry said. “I can triage support for their societies, so you still reach out to me directly and I can reach out to their liaison for support.”

Whether it’s applying for emergency relief, advice on setting up an initial budget or for help with other financial issues, Winesberry emphasized that the USAG Benelux Financial Readiness Services are there to help.

“Don’t be embarrassed or feel like you’re the only one who comes (for help),” Winesberry said. “Please come and see me if you are seeking some assistance.”

“Let’s do what we can…so that you can really address that bill when it comes.”

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