I have installed a new shower and when the dial is turned to economy the light on the shower comes on but no water flows through, have checked water pipes and the are not blocked, when the dial is turned to hot or cold the light on the shower goes off, the light on my old shower would flicker on then off when it was turned on
 
I sounds like a bad connection at the isolator switch or the switch itself.All wires from the mains through to the shower needs checking for tightness and continuity.
 
If this is a new shower, there are 3 options

1. new shower is faulty
2. fault with the existing wiring
3. incorrectly wired to existing supply.

I would strongly recommend that you get a qualified electrician in to fix this issue as there is more to it than just putting the wires where the instructions tell you.

faults with electric showers are more likely to be fatal than most other faults.
 

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Electrical shower problems
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UK Electrical Forum
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Johnales,
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