From the Super Mario Wiki, the Mario encyclopedia
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Electrified is a positive status condition encountered in the Paper Mario series. It is indicated by small lightning bolts emanating out of Mario, his partner, or the enemy. If the electrified character is struck with a contact attack, the attacker will take 1 damage and be unable to continue their attack should it have multiple parts (such as Mario's jump rebound or The Master's combo attacks). Attacks with a delay between making contact and damaging (such as a Fuzzy's HP leeching) are most strongly affected, as electrification will interrupt the attack before any damage is done and completely protect the user.
Watt is the only character, friend or foe, to be electrified at all times. A Volt Shroom will electrify the user or the user's target for a few turns. The Zap Tap badge will electrify Mario permanently. The Lucky Start badge has a 25% chance to electrify Mario for two turns upon entering battle. Certain enemies such as Dark Puffs can electrify themselves, while others such as Magikoopas can electrify themselves or their allies. Finally, some falling stage lights can damage and electrify combatants.
An electrified character is immune to the effects of opponents' electrification; for example an electrified Mario can safely attack a Duplighost's Watt or a charged Ruff Puff without being damaged or having his attack interrupted.