Sparking occurs when an electrical current momentarily flows between two objects at different electrical potentials. While a spark is a quick flash of current, an electrical arc is a continuous discharge of electricity through a normally nonconductive media (like air).
Switches, circuit breakers, fuses, poor cable terminations, and malfunctioning appliances could all be sources of sparking and/or arcing. If sparking or arcing does occur, the heat that results from the electrical discharge could melt wires, destroy insulation, and start fires.
If you notice that electrical equipment in your home is sparking, arcing, or smoking, contact an electrical technician immediately to prevent additional damage.