Two fundamental types of electric power supply systems, grounded neutral and the ungrounded (isolated) neutral systems are discussed and compared for their merits and demerits for both personnel safety as well as system reliability. Solid earthing on low voltage side distribution system is mainly done for the sake of human safety. But non-conforming with earthing regulations on the consumers side, makes the system highly vulnerable to shock and fire hazards. On the other hand the isolated neutral system, obviously, is safer than the former by not providing earth as a return path. An accidental contact of a human with a live conductor standing on earth, will not constitute a closed path, and thus decreasing rate of risk of electric shocks. With its apparent advantages, there are some objectionable features of this system as well. It is the intent of this paper to review and investigate the short comings of both systems and to suggest some possible compromise between them based solely on our domestic conditions.