On mains pressure gas cylinders it is normal and expected that when the gas burner lights up and begins to heat the stored water – the water will expand and as it has no where to expand to it will discharge out through one of the safety devices fitted such as a pressure and temeperture releif valve (PTR Valve) – this is quite normal and should be of no concern. If however, the water being released is continually flowing and as a result will make the gas burner run all the time to try and heat the water one would expect then that the TPR valve is in need of replacement.
One way to overcome the constant discharge of hot water to waste is to fit a cold water relief valve (rated at approximately 70% less than the hot water one) into the cold water inlet line to the cylinder. This will then allow cold water to discharge instead of hot water and will save you costs in wasted energy consumption.
Hope this helps.
Selgas Services Ltd
Craftsman Gasfitters, Plumbers, Electrical Service Technicians