Suppose the neutral is lost in the service equipment (main panel) or service disconnect. In a ground fault condition, current flows back from the load to the neutral bar in the remote distribution panel (subpanel), which is connected to the neutral terminal busbar in. The neutral wire provides a return path for current back to the power source, completing the electric circuit. It is insulated and carries current under normal conditions back to the transformer. A neutral wire allows the three phase system to use a higher voltage while still supporting lower voltage single phase appliances. While some say that the entire. In an electrical system, the neutral fault refers to a condition where the neutral conductor of a three-phase or single-phase electrical circuit becomes disconnected or compromised. In the. loaded phases which means neutral is loaded.