Ute
that tap is a pressure relief valve
releases excess pressure
normally drips when unit is heating as water expands when heated and pressure rises.. it is fairly common/normal for these to slowly drip/leak while electrical element is on.
I would lift the lever a couple of times and release any pressure - there may be some grit etc in valve, holding it slightly open. this may release it.
if not the valve is replacable
recollection is approx $40 for pressure valve not fitted
cheers
Nobby



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