When you receive the electrical current from the utility company, you are receiving a single phase 240 volt.
In order to use this in your home and receive 120 volts, the voltage is split into two by way of a center tap that is called a neutral wire.
This wire is also called the grounded conductor.
The neutral wire is attached to the water main or even an electrode, then to your electrical panel.
This grounds your electrical items. The grounding wire is the safest way to protect your property from fire and to prevent electrical shock.
If your appliances or electronics are not grounded, the current will travel through the stray path to cause an electrical shock. The neutral wire (also called the earth wire) is either white or grey and carries the current away from the electrical item.
If this wire is not hooked up correctly, there could be a potential hazard for a fire or shock. It must be grounded to the water main or electrode.
Neutral wires are for grounding and nothing more. They protect you from possible injury and protect electrical equipment from any stray current that comes into the home.
A professional, licensed and insured electrician or electrical contractor is needed to properly ground the current so there is no injury or hazards to your home or you. No home or other building should use any electrical current without proper grounding.