I never understood the need for the ground lead when the common was already grounded
The US code requires the neutral, the protective ground house wiring, the grounding rod or network, the water main, and the gas main, to be "bonded" at exactly one point. (Typically this is the box containing the main breaker.) In particular, they MUST be separate in subpanels.
Apparently some European standards go farther and have the one bonding point at the transformer.
The point of having only one bonding point is multifold:
- It keeps the voltage drop from return currents in the neutral wire - or faults in the neutral wire - from producing dangerous voltages in the ground network. (The ground network is connected to things like swiming pool water and metal-cased electrical equipment. A nonzero voltage there might electrocute someone leaving a hottub, holding a tool while touching a pipe or stepping in a puddle, etc.
- It prevents diversion of neutral return currents from the circuit's neutral wiring to another circuit's ground wiring - which might not be adequate and thus might start a fire.
- It helps keep ground currents from nearby lightning strikes out of the house neutral and ground wiring, and tends to confine lightning current to a circuit's own ground path in a direct hit.
The "one bonding point" standard in the US is apparently a compromise allowing lightning ground current to flow in the heavy neutral drop wire in return for providing SOME protection for the house in a situation where the neutral wire to the pole opens or the earth ground is lost at the pole. (The latter situation, with no grouning bond at the house and a Y configuration for the pole-pig, could end up with the house wiring floating at 8KV - as happened to my brother's house a few years ago. B-( )