Is it normal for water to drip from the safety valve during operation?

Yes, during use (water heating mode), dripping of water from the safety return-valve's drainage opening is normal. The latter must be left open to the atmosphere. Measures should be taken to lead and collect the leakages in order to prevent damages, and the requirements described in section V, item 2 must be met.

From the official Tesy Electric Water Heater manual, page 5

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