With increasing generation and network capacity added to an electrical network, fault level reduction is an ongoing task for electrical power distribution companies and the main business drivers are:
- Maintain the existing equipment within design ratings to avoid expensive upgrades
 - Safety and reliability
 - Bushfire risk mitigation
 - Storms
 - Improvement of supply quality.
 
Short circuits between phase and ground can result in irreversible damage to networks and equipment, therefore a Neutral Earthing Resistor is a good preventative option to control and reduce their effects.
The reason for limiting the current by Neutral Earthing Resistor may be one or more of the following:
- Reduce burning effects in faulted electrical equipment
 - Reduce mechanical stresses in circuits and apparatus carrying fault currents
 - Safety, reduce electrical shocks caused by stray ground fault currents in the ground return path
 - Easier detection of fault location
 - Transient over voltages.