The neutral wire is essential component of the house electrical connection. The neutral wire is required for the completion of the electrical circuit and electrical gadgets to function. All the electrical gadgets must be connected to the phase and as well as to the neutral wire. The electrical connection is incomplete without the neutral wire. The phase wire carries the electrical supply whereas the neutral wire returns used electrical current and helps to complete the electrical circuit. The neutral is also a type of grounding done at the transformer level.