Efficiency improvement under faulty conditions is one of the main objectives of fault tolerant PM drives. This goal can be achieved by increasing the output power while reducing the losses. Stator copper loss not only directly affects the total efficiency, but also plays an important role in thermal stress generations of iron core. In this paper, the effect of having control on neutral point current is studied on the efficiency of five-phase permanent magnet machines. Open circuit fault is considered for both one and two phases, and the distribution of copper loss along the windings are evaluated in each case. It is shown that only by having access to neutral point, it is possible to generate less stator thermal stress and more mechanical power in five-phase permanent magnet generators. Wind power generation and their applications are kept in mind, and the results are verified via simulations and experimental tests on an outer-rotor type of five-phase PM machine.