Donna Senior had bought the charger for her iPhone a few days earlier, but after plugging it in for the first time, she and her newborn daughter Ella were awoken by a loud bang in the early hours of the morning.
Half of the phone charger had come away from the plug socket, leaving the connection in the wall black and frazzled.
Donna, 30, from Huddersfield, West Yorkshire, told her local paper: "It just blew up, it was terrifying. I nearly jumped out my skin. It was dark in the room as it was the middle of the night and I didn't dare look round for a minute as I didn't have a clue what had happened.
"My little girl Ella has colic and so we are sleeping in the living room together so not to wake everyone else up during the night.
"When the charger came away from the wall it hit her moses basket, I'm surprised the whole thing didn't go up.
"It could have been a completely different story, both of us could have been killed."
Donna bought the £8 Revive A1299 USB charger from The Phone Shop in Huddersfield Bus Station on December 20, but didn't use it until New Year's Eve.
A spokesman from The Phone Shop said: "We have been contacted by Trading Standards regarding this matter and we are currently making enquiries.
"All of our products are tested by the manufacturer before they go on sale because we do not want to tell anything which is faulty, and we are very sorry to hear what has happened to this lady.
"If she can provide a receipt for the charger, we will of course provide her with a full refund."
Tony Downham, of West Yorkshire Trading Standards Service, said they would investigate the incident.
He said: "There have been reports of house fires in London and the south east due to this sort of thing."