Create a security group. With this group of users, allow them to change passwords.
There are two ways to change passwords. One from the "Change Password" button in user form view and from the Action > Change Password. Both options are available from the Users form/tree view.
Inherit user form view and wizard action, provide groups which we have created in the first step.
Upgrade your module. Login with and without a special security group and you will notice that Change Password is only visible for special users who have security groups turned on.